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'WARM'ing Up: PROS AND CONS OF USIN0 WARM FOR CECL IMPLEMENTATION

机译:'温暖的:USIN0 HARD的优缺点对于CECL实施

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While the WARM method is certainly not the most robust methodology, it can be a fitting choice for smaller, less complex banks or segments within the portfolio. The WARM method is a simpler model compared to others and is quick to execute and implement, and for institutions lacking in loan-level and historical data, it has minimal data requirements. However, it does have its share of shortcomings, such as how it can be punitive to longer-term portfolios. A key takeaway for financial institutions considering the WARM methodology is to keep in mind that it can be subjected to scrutiny and is not a good fit for sophisticated portfolios.
机译:虽然温暖的方法肯定不是最强大的方法,但它可以是投资组合中较小,更复杂的银行或段的拟合选择。温暖的方法是与其他方式相比的更简单的模型,并且很快就会执行和实施,并且对于贷款级别和历史数据缺乏的机构,它具有最小的数据要求。但是,它确实有其缺点份额,例如如何对长期投资组合进行惩罚。考虑温暖的方法论的金融机构的一个关键外卖是要记住,它可以审查,并且不适合复杂的投资组合。

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