Return of the TDR: How to Prepare for Coronavirus-Related Loan Restructurings
Abrigo
MARCH 20, 2020
Key Takeaways For the first time in more than a decade, bankers may be dealing with large numbers of TDRs due to the coronavirus crisis. The FDIC recently reiterated that financial institutions should determine whether loans affected by COVID-19 should be reported as TDRs. A decision by FASB on TDRs and coronavirus modifications will be critical for lenders, given the implications for calculating the allowance for credit losses, or the allowance for loan and lease losses.
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