Qualitative Factor Coefficient (Q Factor) results appear on every Current
Expected Credit Loss (CECL) Analysis grid.
There are three Q Factor-related columns. The columns
are Q Factor Adjustment, Expected Loss
With Q Factors, and Expected Loss % With Q
Factors.
You can see the Q Factor results in the Analysis
page grids after you define the Q Factors:
- CECL Summary
-
- All the Q Factors entered for each month are applied at the
top summary level.
- In the three Q Factor columns, you can see the cumulative
effect of all the adjustments, which includes the Category, Factor, and
individual numbers.
- You can use the Discounted option on the Analysis grid to switch between a discounted and
non-discounted view to review how the expected loss values change.
- CECL Categories
-
- All the Q Factor values that you see in this grid are
prorated down from the top summary level.
- Factor-level Q Factors are prorated down and are applied to
all categories. If you have factor-level adjustments, then you see that
every category has a Q Factor Adjustment.
- Category-level Q Factors are then layered on top of
specific categories. If you do not have factor-level adjustments, then
you only see adjustments on those categories that have Q Factors
supplied to them.
- Individual account-level Q Factors also affect the
adjustments made to their related categories.
- CECL Details
- If you have Q Factors for individual accounts, then you can see
those specific Q Factor Adjustments in this grid.