A DEEP DIVE ON VINTAGE AND ROLL-RATE METHODS
ESTIMATING CECL USING VINTAGE AND ROLL-RATE METHODS Post the 2007-2008 financial crisis, the Allowance for Loan and Lease Losses (ALLL) method proved inadequate for the adjustment of reserve levels of financial institutions. It caused a massive wave of credit losses for banks. To rectify this situation, on June 16, 2016, the Financial Accounting Standards Board […]
