Provision for Credit Losses


  • The amount deducted from income that is equal to the amount a bank adjusts its loan balances to reflect anticipated losses on the loans.

Relevant Locations

allowance for doubtful accounts, allowance for credit losses, bad debt expense


Related Terms and Acronyms

  • Bank Definition,
    • An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
  • Credit Risk Definition,
    • The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
  • Deductions Definition,
    • Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.
  • Lender Definition,
    • The bank or mortgage company offering the loan.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Loss Definition,
    • When expenses are larger than revenues.
  • Principal Definition,
    • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • Remaining Balance Definition,
    • Unpaid principal on a loan.
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