*Note: NCUA updated the Allowance for Credit Losses (formerly Allowance for Loan and Lease Losses) chapter on June 05, 2023.
Examination objectives:
- Determine if management has a sound methodology, with supporting documentation, for estimating the amount of probable existing losses in its loan and lease portfolio
- Assess the overall adequacy of the Allowance for Loan and Lease Losses (ALLL)
- Ensure management understands the purpose of the ALLL