Banks are facing increasing difficulty navigating recent regulatory changes to the allowance estimation process. FASB’s CECL standard impacts how banks account for their allowance estimation process. This is in addition to a slew of regulatory changes related to allowance accounting that came out in the last few years, which indicates that banks can anticipate future regulatory changes that will increase complexity of allowance accounting. Financial institutions will need to ensure that they are in a position to handle all existing challenges in their allowance estimation process, which will set the stage to effectively incorporate expected draft changes into their allowance estimation process. The goal of this white paper is to communicate the basics of allowance estimation and describe the challenges associated that banks will continue to face in an always changing regulatory environment. Is your bank ready to handle these changes? In this report, SS&C Primatics will highlight the following:

• Propose how banks can put in place a flexible and robust system
• Define the challenges banks continue to face in a changing regulatory environment
• Propose guidelines and steps that banks could take to tackle these challenges
• Communicate how to process and analyze these systems to handle these changes in an effective manner
• How regulators continue to issue guidance on how banks should estimate ALLL to ensure that product lines are accurately valued

For more information on how we can assist with your bank's ALLL process or how EVOLV may be able to help your bank, please contact us directly at info@primaticsfinancial.com.