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On the high side 15 bips of the loan amount should be set aside for loan loss reserves.
example a $100,000. loan amount $150.00 should be set aside for the llr.
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∙ 14y ago
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What happens to unused loan loss reserves?
Unused loan loss reserves represent an overestimation of the bad loans on the books. Ultimately, the unused loan loss reserves would be taken into income
What insurance is need for your RV loan?
Most loan companies will require that you have liability, collision, and comprehensive coverage. That covers you hitting someone else, someone hitting you, and loss due to fire, theft, storm damage, etc.
Why is a loan a liability for a bank?
The person or business may not pay the loan back and the bank has to take the loss
What does Loan Loss allowance mean?
Amount of money that a bank might lose because of its loan not being fully repaid.
When is a loan written off?
they gave up trying to collect and call it a loss.
What happens to unused loan loss reserves?
Unused loan loss reserves represent an overestimation of the bad loans on the books. Ultimately, the unused loan loss reserves would be taken into income
What has the author Giovanni Majnoni written?
Giovanni Majnoni has written: 'The dynamics of foreign bank ownership' -- subject(s): Banks and banking, Foreign Investments, Privatization 'Bank capital and loan loss reserves under basel ii' -- subject(s): Bank reserves, Loan loss reserves
What is the difference between Loan Loss Reserves and Loan Loss Provisions?
loan loss reserve: loans are going to default so banks use part of provision to book reserve. loan loss provisions: percertage of gross loans that all banks have to keep in their balance sheet as regulated
What is pure loss ratio?
Ratio of the company's total net paid losses during the current year plus the change in loss reserves since the prior year end to the current year premiums earned.
What factors effect loss ratios?
To explain loss ratio we have to start by the factors included in a loss. The loss factors are: Claims paid plus net reserves plus incurred but not reported (IBNR) plus provision for adverse deviation (PAD) Total them and substract your total with Total recoveries (actual +potential) You now have the total loss. Once we have these factors, we can divide the loss by the earned premium to obtain the ratio.
What does it mean when the accident year loss ratio is higher than the calendar year loss ratio?
I am assuming the year, is the 'company year' and calendar year is just that... It can mean that the insurance company is releasing redundant loss reserves. This reduces the losses incurred in the current calendar year, reducing the loss ratio, and has no impact on the accident year results. Calendar year loss ratios generally measure financial performance while accident year loss ratios measure the quality of the currenty written accounts.
Does loss assessment policy cover an assessment for a new roof for a condo?
Loss assessment insurance coverage covers damage. A new roof should be covered by reserves or by special assessment, and would not be considered a loss unless the new roof was required based on some catastrophic loss, such as a fire or wind storm.
How are loan loss provision and loan loss reserve recorded?
ojkpk
What insurance is need for your RV loan?
Most loan companies will require that you have liability, collision, and comprehensive coverage. That covers you hitting someone else, someone hitting you, and loss due to fire, theft, storm damage, etc.
What is a win to loss ratio?
A win loss ratio is to keep track of records for a season. Ex. 4:3 Ratio. the 4 is the win while the 3 is the loss airgo win loss ratio.
Why are lease payments included in numerator of fixed charge coverage ratio?
because lease payment is deducted as expenses in profit and loss statement. So while calculating this ratio again we have to add it to earnings before interest and tax
How do you calculate credit loss ratio?
how do we calculate credit loss ratio in banks financials
