April 2021
Allowances for Credit Losses
This publication is part of:
Collection: Comptroller's Handbook
Series: Safety and Soundness
Category: Asset Quality
Series:Safety and Soundness
Category:Asset Quality
OCC Bulletin 2021-20, Allowances for Credit Losses: New Comptroller's Handbook Booklet
Overview
The booklet provides information regarding allowances for credit losses. It describes the scope of the current expected credit losses (CECL) methodology, risks associated with allowances for credit losses, and seven primary components used to estimate allowances for credit losses.
Applicability
This booklet applies to the OCC's supervision of banks that have adopted the CECL methodology under Accounting Standards Codification Topic 326. The "Allowance for Loan and Lease Losses" booklet of theComptroller's Handbookcontinues to apply to the OCC's supervision of banks that have not adopted CECL.