Topic archive

ALLL

Research and practical notes filed under this topic.

January 22, 2025

Credit Union Charge-Off Strategy: Hold, Place, or Sell?

Credit unions evaluating charged-off loans should compare expected net recoveries, costs, operational capacity, and transfer risk rather than assume that a sale improves capital or compliance. This guide explains charge-off accounting, hold-versus-sell diligence, buyer oversight, and U.S. consumer-protection considerations.

Read the analysis

January 6, 2025

ALLL and CECL: Allowance for Credit Losses Explained

The allowance for credit losses is an accounting estimate of credit losses an institution expects to incur on covered financial assets. This guide explains how the legacy ALLL concept differs from the Current Expected Credit Losses (CECL) approach, what supports a sound estimate, and where U.S. regulatory context matters.

Read the analysis