Banking Issues Update- Vol. 1.1
- Topics:
- Credit Management
- Tags:
- Allowance,
- Asset Management,
- Banking,
- Business Operations,
- Finance,
- Financial Accounting,
- GAAP,
- Operational Planning,
- PricewaterhouseCoopers Consulting
- Source:
- PricewaterhouseCoopers
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Overview: Managing problem credit exposures in an effort to reduce risk continues to be a priority for financial institutions. Many are finding it challenging in this environment to improve, or even maintain asset quality while realizing the growth and efficiency gains necessary to drive shareholder value. This environment also presents significant challenges in striking an appropriate balance between safety and soundness concerns and consistency with GAAP principles when recording an appropriate allowance. Bank regulators and the SEC, while sometimes having a different perspective on the level of the allowance and provisioning through earnings, both weighed in with additional guidance in 2001 stressing the importance of better documentation of methodologies and support for the allowance.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 890KB | Date: Mar 2003 | Pages: 32
