Identifying Impaired Loans to Meet Regulatory Requirements

When is a loan impaired?

Each institution may have its own approach for deciding when it will recognize that it will no longer be able to collect all amounts contractually due. Some may wait until they have exhausted all possible ways to help a borrower. Others will recognize an impairment when a loan goes on nonaccrual. However, many institutions will not have a clearly written policy for identifying impaired loans. And that’s the problem because examiners typically have their own definition of when a loan is impaired. So if yours in not in writing, or does not meet their expectations, examiners will expect you to use theirs.

So having a clear, defensible, written impairment identification policy that meets regulatory expectations is essential to adequately defending your position when the loan examiner is preparing to write you up for safety and soundness issues. Of course, your policy has to meet the requirements of both regulatory guidance and generally accepted accounting principles.

Instead of a seat-of-the-pants approach that institutions have used for years, the regulators are asking for the specific steps that institutions will take to determine if and when a loan is impaired.

Please join us for this important webinar as our expert, Gary Deutsch, will help you define your approach to identifying impaired loans to meet regulatory requirements and expectations and comply with GAAP.

WHAT YOU’LL LEARN

These crucial issues will be discussed:

• Methods for identifying impairment triggers
• How to establish a uniform impairment identification policy
• How to determine if impairment accounting is required
• Estimate the amount of impairment under GAAP
• Determine when and how often you need to update impairment estimates
• Identify where impairment estimates should be included in financial reports
• Prepare for changes coming to the impairment estimation process under the FASB’s proposal
• AND MUCH MORE!

YOUR CONFERENCE LEADER

Your conference leader for “Identifying Impaired Loans to Meet Regulatory Requirements” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.

Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.