VBC will help you accurately assess your current expected credit loss options for your specific solution. This involves understanding how to best leverage your historical data to efficiently calculate your reserve and provide the requisite reports and disclosures. Institutions should balance the need for an accounting number while also considering the potential of the full integration of credit risk into earnings and capital decision making.
VBC provides full service CECL modeling either at the aggregate position level or at the loan level. Utilizing core system loan portfolio downloads, the model will calculate the reserve using client loss data calibrated, where necessary, to historic institution-specific or national averages.
Outputs from the CECL model will include accounting, ALCO, credit and all necessary regulatory disclosures as well as clear exposition of the process and underlying assumptions. Reports will not only include required disclosures but also any client customized requests by any field category available.
Utilizing the loan level detail accompanied by all credit risk scoring data, the system will run any specified risk scenario. Thus, providing customized credit stressed reports and analysis. These stress tests can be fully integrated with the institution’s loan portfolio and balance sheet.
VBC can assist with the transition to CECL life-of-loan modeling requirements. Our services include assessing appropriateness of methodologies, evaluating core system data capabilities and assisting with either Excel-based model development or software-based implementation.
From modeling and stress testing, model validations and back-testing, deposits and loan analytics to strategic consulting and advisory services, we deliver the most comprehensive and robust solutions and reports in the industry.
