Topic:
CECL
-
How to Incorporate Tariffs into Loss Forecasts
With the uncertainty and possible economic harm surrounding the recently-announced tariffs—whether they stay, disappear, reappear, or mutate—bankers face the challenge of integrating their effects into Current Expected Credit Loss (CECL) and stress test estimates.… Continue Reading
-
Are Banks Ready for a Downturn in 2025?
It’s been fifteen years since the last long and deep downturn. Alas, periods of calm are not proof of resilience against harm, and in fact, they may obscure risks that may define the next downturn. … Continue Reading
-
Will More Bank Regulation Reduce Share Prices
During a recent Q&A session with investors and analysts, Andy was asked, “how much will bank earnings suffer because of the anticipated increased regulatory burden after SVB?” The implication was that more regulation increases expenses and/or reduces opportunities, which, in turn, reduces earnings and share prices. That seems to be … Continue Reading