CECL drains $2.9bn from Capital One’s CET1
Adoption of the Current Expected Credit Loss (CECL) model for setting loan reserves will knock $2.9 billion off of Capital One’s regulatory equity capital over four years.
Allowances for credit losses increased 40% to $10.1 billion on January 1, when the switch to the new model took place. Allowances for consumer banking climbed the most percentage-wise, by 48% to $1.5 billion. Credit card allowances jumped 42% to $7.7 billion, and those for commercial loans 13% to $876 million.
Capital One
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk Quantum
7 days in 60 seconds
Oil price models, IM changes and VAR caps
The week on Risk.net, May 16-22, 2020
Receive this by email