Are bakery companies alone being targeted in a bid to reduce salt in foods?This was the question asked by Pat Smyth, of the Yeast Products Com- pany, at ’A Bakers Dozen’ workshop, organised by Relay*, in Dublin on 8 March. “This is damaging the perception of bread as a product,” he said. “Based on current fermentation technologies and taste requirements, we bakers find it very difficult to reduce salt any further.”Dr Wayne Anderson, chief specialist food science, of the Food Safety Authority of Ireland (FSAI), responded by saying that all sorts of foods, not just bakery, are being targeted to reduce salt consumption from 10g to 6g per day by 2010. His paper, at the Relay event, covered the FSAI’s work on the voluntary reduction of salt. He admitted that much had already been achieved by the baking industry and research is urgently required into salt reduc-tion and its effects on the baking process and flavour.A new round of discussions is to take place with the Irish Bread Bakers Association (IBBA) and with individual companies, some of which are prepared to go further in salt reduction than the IBBA, he told British Baker.Fibre boostSpeaker Dr Sarah Burke, University College Cork (UCC) said that, as bread is consumed so regularly and by so many, it is the ideal food to help increase fibre intake. She added that wholemeal bread could substitute white, that more wholemeal bread could be eaten at lunch and more bread at weekends.Seventy-seven per cent of Irish adults and 61% of children do not meet the recommended intake of fibre and this could be met by adding fibre to bakery products. A survey on food consumption by the Irish Universities Nutrition Alliance showed that consumption of wholemeal bread is particularly low among children – around 40% consume wholemeal as compared to 98% who eat white – and a higher intake of fibre needs to be promoted. The survey noted that wholemeal bread is consumed at breakfast but white is more popular at lunch, and consumption of all types of bread is reduced at weekends. Bakers at the event suggested that fibre can be added to white bread, thus making it easier to persuade children to eat wholemeal.Twenty per cent of bakery production is being lost due to mould spoilage, according to UCC research, which shows that the use of specific sourdoughs can reduce spoilage but, combined with calcium propionate, can increase the shelf life of wheat bread considerably more. New lab-on-a-chip and bioanalyzer technology identifies quickly the proteins in wheat grains and in particular the glutens. This in turn will lead to swift identification of the baking potential of specific wheat varieties from particular geographical locations.Transglutaminase, a naturally occurring enzyme, can promote a protein network formation in gluten-free flours, one research project has shown.substitute for glutenNew research has been approved to look into the use of a functional casein-based ingredient to substitute gluten in bread. A freeze-dried ingredient could be produced for incorporation into the dough-making process. The demand for gluten-free products will continue to increase and UCC and the Ashtown Food Research Centre, Dublin, which hosted the conference, are working together and are among the most prolific researchers in the world into this area.Other research projects under way include low glycaemic index (GI) breads. The GI diet, where food is slowly digested, controlling satiety and maintaining healthy blood sugar levels, has proven popular. High GI, on the other hand, is claimed to contribute to type-two diabetes, forms of cancer, increased risk of cardiovascular disease and obesity. At the moment, the starch in most bread is more on the high-GI side so research into slowly digestible, fibre-rich starch and functional ingredients with a low GI is taking place. n* Relay, a one-stop-shop for food research information, is funded by various government, public and EU bodies
Advertisement AdvertisementThe Golden State Warriors will almost certainly want Klay Thompson to take less money from them next summer than he could earn on the open market, and it seems clear that the sharpshooter is very much open to the idea of a hometown discount.Klay Thompson has one more year on his Warriors contract, then he can become a free agent unless the Warriors sign him to a long-term deal. That’s no slam-dunk, given the complexities of NBA contracts and the Warriors’ massive payroll.“Oh yeah, you can mark it down,” Mychal Thompson said at a party to promote the Thompson Family Foundation’s first charity golf tourney. “Klay’s going to retire in the Warriors’ uniform. He’s going to play at Chase Center (the Warriors’ San Francisco arena, opening in 2019), and he’s not going to be at Chase Center as a visiting player, he’s going to be a Warrior for the next seven or eight years.”Kevin Durant has already taken a pay cut to allow the Warriors to keep their core together, and some comments Thompson made in the past make it seem like he could be open to doing the same.Also Read-NBA: Greg Monroe signs 1-Year, $2.2 Million deal with Toronto Raptors
Raising the Standards of Success credit loss standard HOUSING mortgage success 2017-11-26 Jeffrey Zuckerman November 26, 2017 671 Views in Daily Dose, Featured, Headlines, News, Print Features Share The credit loss standard (CECL) issued by the Financial Accounting Standards Board (FASB) overhauls the current impairment models for loans, leases, and debt securities and also impacts commitments. It removes the “probable” threshold under the “incurred loss model” for recognizing credit losses. We will explore the new CECL Standards interms of what they do and how they impact the financial Industry, and what it will take to implement CECL in summary.Then we’ll take a look at preliminary disclosure format examples: scope, sample sizes, and data requirement. We’ll close with a review of how Mortgage Industry Advisory Company (MIAC) is helping our clients prepare.Overview of the RulesFirms will be required to report the current estimate of lifetime loan losses, incorporated into the Allowance for Loan and Lease Losses (ALLL): thusly, CECL brings fair value into the ALLL. While a DCF approach was considered by FASB in exposure drafts, the final standard allows any approach, as long as it is reasonable. Institutions, auditors, and regulators will decide, so early discussions areencouraged.Both quantitative and qualitative methods are to be utilized jointly in a process that is generally described. Although there is a strong a bias to the use of cash flow models with assumptions powered based on quantitative data and “reasonable” scenarios, a justified historical loss-based result, which is quantitative only, could suffice.The basis of Allowance Estimates is that CECL requires that estimates be based on relevant information about past events, including both qualitative and quantitative factors such as Historical loss experience with similar assets, then-current conditions, including evaluations of the borrower’s creditworthiness, and reasonable and supportable forecasts that affect the expected collectability of the financial assets’ remaining contractual cash flows.Historical experience is quantitative information, so many models are based on it. Reasonable forecasts and conditions assessments are qualitative in nature as they must provide a forecast direction and estimate. Any factors not otherwise addressed in the final process arelikely to be qualitative in nature.Other qualitative factors include:Changes in lending policies and procedures, collections, etc.Changes in the experience of management and staffChanges in the quality of the loan review systemFinancial assets carried at amortized cost less a loss allowance will reflect the current expected cash flows to be collected and the income statement will reflect the credit deterioration or improvement.If financial assets are carried at fair value with changes in fair value recognized through other comprehensive income (OCI), the balance sheet would reflect the fair value, but the income statement would reflect credit deterioration or improvement.Under some circumstances, the institution can elect not to recognize expected credit losses on assets held at fair value. The conditions are that both the FV exceeds or equals the amortized cost, and ifexpected, credit losses are insignificant.What Will it take to Implement CECL?An array of new processes will be required, including but not limited to management, governance, risk reporting, controls, and functional integration.Program management will be the start, as will be newfound coordination among functional areas such as finance, originations, credit, operations and technology, and a revised governance and riskmanagement framework.Segmentation of loan, lease, and debt portfolios into clearly identifiable portions with similar and discrete characteristics is the next step. This means specific identification and description of thecharacteristics of the assets will be used to model probability of default (POD) and loss given default (LGD) to make the ALLL processes Basel compliant, plus development of specific credit risk modeling and forecasting models and tools.FASB will require institutions to develop well-documented data management and data quality processes. Validated Extract-Transform-&-Load (ETL) systems and procedures and data quality reporting must be created.Next, firms will identify control points in the origination and operations areas to ensure adequate support and data capture, and integration of new tools within Financial and Regulatory ReportingProcedures.Importantly, dual (jurisdiction?) reporting institutions—CECL and IFRS 9—firms will need to:Handle 12-month (IFRS 9) versus lifetime (CECL) credit loss projections and reporting in models and report generation; and Estimate credit losses for future draws on commitments for IFRS andfor commitments that cannot be unconditionally canceled for CECL.Planning for CECLThere are definite steps that organizations need to take to prepare for integrating these standards. This will start with defining a revised governance standard for CECL, establishing a steeringcommittee/task force with members currently in high-level positions infinance, originations, credit, and operations who have management backing. This team needs to be given budget and action authority to implement prescribed procedures.Then, as required, firms will need to identify appropriate external consultants and partners who can participate and contribute to the process, and should seek ways to integrate them into the processearly. These firms should be able to create and/or evaluate models for conformance with the new standards.Next, these teams will determine the resource needs involved in each area and inventory what exists today, beginning with performing initial portfolio segmentation of all loan, lease, and debt assetsheld, determine what data is needed, and what models and the technology needs by portfolio.The committee will need to examine existing models and methods used in the ALLL process to determine which have the potential to meet the new requirements. Generally, cash flow forecasting models offer potential, and static models do not. Firms will perform pilot evaluations of the potential impact of CECL on the financial statements and the organization over the next two years, and then develop revisions to policies and procedures, to audit policies, and to model riskmanagement practices.These findings will be used to build the “how-to” document or “roadmap”. Key objectives and milestones should be set along these lines:SegmentationWarehousingMetricsModelingScenariosPortfolio Segmentation: Segment the loan, lease, and debt portfolio into meaningful segments, so that then, firms can appropriately define data elements needed for each. This leads to identification of the critical statistical drivers of performance, which will be used in themodeling and reporting, and defining data models.Establish Data Warehousing: The CECL plan should include the data warehousing and capture infrastructure, tools and data models required, which will require implementation of powerful data capture methods, in monthly snapshots, including credit data and performancedata. Firms will need to obtain and reconstruct as much historical data as possible, plus review existing and alternative models, research credit modeling, loss modeling, and voluntary prepaymentsmodeling.Firms must identify models that can be used or repurposed for different products, internal and external, and identify leverage opportunities and efficiency gains from current models, processes,workgroups, and modeling approaches (ALLL, DFAST, or internal vs.vendor models).Develop Metrics and Assumptions: MIAC helps firms use these data models to develop key reporting metrics and descriptions of the drivers used in the credit, loss, and prepayment models; determineassumptions; and drive the building of a descriptive narrative of all the models selected and the processes to be used.Model Design and Development: Institutions will utilize the warehouses and the tools to develop historical analysis and internal models, and integrate results with existing systems. The task will be to expand these systems to handle scenario inputs, develop financial and managerial reporting format, as FASB will require lenders to define and explain the use of any credit-grading systems and otherqualitative inputs to the ALLL process.Design Reasonable Scenarios: CECL urges banks to develop a narrative to explain the basis of the scenarios and why they are deemed to be reasonable. Regulators will review the scenario rationales with senior management, so institutions are preparing currently with externalconsultants and auditors.Firms will begin parallel test runs of the CECL ALLL process and the existing process, and test the process and the models and back-testing models. The challenge is to identify differences (size), volatility in results and capital impacts, and evaluate strategic considerationsacross product lines. Naturally, product pricing, origination standards, processing, collections, and operations will be of the essence.The CECL Committee is encouraged to write narratives, and work closely with auditors and external partners to finalize the narratives and reporting.