Finance & FP&A — Banking

You estimate credit losses under the Current Expected Credit Losses (CECL) standard: building lifetime loss models by portfolio segment (CRE, C&I, consumer mortgage, consumer non-mortgage), incorporating reasonable and supportable economic forecasts, and managing the transition from incurred-loss to expected-loss methodology. You set qualitative factors (Q-factors) for risks not captured in quantitative models, present provision recommendations to management and the board, and manage the interplay between provision expense, reserve adequacy, and earnings impact. CECL is simultaneously an accounting standard, a regulatory expectation, and an earnings management challenge.

You forecast NII under various rate scenarios: modeling loan and deposit repricing behavior, new production assumptions, prepayment speeds, deposit betas (how much of a rate change passes through to deposit pricing), and balance sheet growth/contraction. NII is typically 60–80% of bank revenue, making NIM (net interest margin) the single most important performance metric. You manage NIM through loan pricing decisions, deposit pricing strategy, investment portfolio positioning, and wholesale funding mix.