X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-Together with the other federal banking regulators and the Securities and Exchange Commission, NCUA recently issued Allowance for Loan and Lease Losses (ALLL) guidance. The guidance Interpretive Ruling and Policy Statement is a follow up on a proposed version issued in October 2001. The ALLL guidance includes the following: * clarifies that each credit union board is responsible for ensuring that controls are in place to determine the appropriate level of the ALLL; * states that the ALLL process must be thorough, disciplined, and consistently applied, and incorporate management’s current judgments about the credit quality of the loan portfolio; * emphasizes NCUA’s long-standing position that credit unions should maintain and support the ALLL with documentation consistent with stated policies and procedures, generally accepted accounting principles (GAAP), and applicable supervisory guidance; and * provides guidance on maintaining and documenting policies and procedures that are appropriately tailored to the size and complexity of the credit union and its loan portfolio. The guidance also provides many useful examples in setting up credit unions’ ALLL and a summary of applicable GAAP guidance with a bibliographical listing of relevant GAAP materials. Credit unions with less complex lending activities may combine some procedures so long as “consistent and appropriate methodology” is maintained.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.