Loan Loss Provision

A non-cash expense for banks to account for future losses on loan defaults. Banks assume that a certain percentage of loans will default or become slow-paying. Banks enter a percentage as an expense when calculating their pre-tax incomes. This guarantees a bank's solvency and capitalization if and when the defaults occur. The loan loss provision allocated each year increases with the riskiness of the loans a given bank makes. A bank making a small number of risky loans will have a low loan loss provision compared to a bank taking higher risks.

单词	loan loss provision
释义	Loan Loss Provision Loan Loss Provision A non-cash expense for banks to account for future losses on loan defaults. Banks assume that a certain percentage of loans will default or become slow-paying. Banks enter a percentage as an expense when calculating their pre-tax incomes. This guarantees a bank's solvency and capitalization if and when the defaults occur. The loan loss provision allocated each year increases with the riskiness of the loans a given bank makes. A bank making a small number of risky loans will have a low loan loss provision compared to a bank taking higher risks.
随便看	non-market benefit non-market economy nonmarketed claims nonmarketed economic activity non-markovian stochastic petri net non-married presumed obligate significant other non-martensitic transformation product non maskable interrupt non-maskable interrupt nonmaskable interrupt non-maskable interrupt enable non maskable interrupt request non-maskable interrupts non-master file nonmatching non-matching to position non-matching-to-sample nonmaterial non-material alternative non-materialization nonmaterially non-material spend nonmathematical nonmatriculated nonmature