Another drastic change is being released by FASB changing the way financial institutions calculate estimated loan losses. This futurist look approach will likely require increases in loan loss estimates for all financial institutions. We can help position financial institutions for this change and minimize the impact this will have on the financial statements, especially the income statement.
In the coming months ahead, managing the balance sheet of a financial institution is going to radically change. We can help you prepare for the changes coming with certain provisions in the Basel III capital calculations and the new loan loss calculation, Accounting for Credit Losses.
Basel III is removing the adjustment currently made to negate the affects of unrealized losses or unrealized gains in the investment portfolio. If you currently have and unrealized gain, your regulatory capital ratio will improve. However, if you have an unrealized loss, your regulatory capital will be penalized. In the near future, investment portfolios must be better managed to minimize the affects rising rates has on your investment values. Likewise, it will be important to capture those gains in income before rising rates rob capital from your institution. Our firm can help with this transition and minimize the effects.
For Financial Institutions we also provide the following:
Asset Liability Management
Investment Portfolio Management
Allowance for Loan and Lease Loss Analysis
In general, what do we provide?
Chief Financial Officer or Controller Assistance
Interim CFO or Controller
Financial Forecasts, Budget and Strategic Planning
Accounting Process Review and Improvement
System and Software Recommendations and Implementation
Process Improvement and Profit Enhancement
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