UPDATES ON CECL AMID THE COVID-19 PANDEMIC IMPACT ON REGULATIONS, MODELING, AND QUALITATIVE CONSIDERATIONS – PART 2- Risk Readiness Special Coverage

This is the second session that will build upon the prior session by diving deeper into consumer and commercial modeling considerations under COVID-19 and the connection to the qualitative framework.  Additionally, we will discuss the latest updates from FASB and the regulatory bodies on CECL deferral and TDRs. 

This webinar will provide participants with relevant background on the stimulus package as well as discuss the current concerns around CECL – COVID 19 impact.  Panelists will discuss the deferment of CECL; current modeling forecasts concerns.  Key areas of focus to be covered during the session include:

1) Defer or not to defer? – That is the question.
2) Scenarios and R&S forecasts (i.e., how are people thinking about scenarios and weighting, lagging information vs. subsequent events, changing or maintaining the R&S horizon)
3) Regulatory actions and guidance (i.e., capital buffers, TDR guidance, true structural problems vs. near term cash flow relief, etc.)
4) Modeling and qualitative overlay considerations (this is where the consumer vs. commercial discussion will start to be differentiated - variables in the models and variable transformations driving intuitive / non intuitive response, sectoral risks not captured through more generalized variables, nuances around PD, LGD, EAD, Prepayment model components, etc.)
5) Disclosures (perspectives on disclosures in the face of uncertainty)