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New financial institution loan loss policies

  • United States (old) Image

16 Dec 2006

Five United States agencies that regulate banking institutions have revised their 1993 policy statement on the allowance for loan and lease losses (ALLL) to ensure consistency with generally accepted accounting principles (GAAP) and more recent supervisory guidance.

The statement outlines expectations for directors and management of banks and savings associations as well as bank examiners related to the development and assessment of the ALLL estimate. This revision expands the scope of the policy statement to include credit unions. In addition, the agencies have also issued a set of frequently asked questions (FAQs) to assist institutions in complying with GAAP and ALLL supervisory guidance. Click to download:

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