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What is the difference between Loan Loss Reserves and Loan Loss Provisions?
Wiki User
∙ 12y ago
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
Wiki User
∙ 12y ago
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What is the difference between a bank loan and a bank credit?
What is the difference between bank loan and bank credit?
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 is difference between loan and debt?
loan is money borrowed and debt is money owed. :-)
Define outstanding loan?
Difference between loan disbursed and loan outstanding; the unpaid remainder that you still owe.
What is loan loss reserves coverage ratio?
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.
Why do commercial bank lend out the excess reserves?
They dont loan out their excess reserves. They only have excess reserves because they dont have loan demand from qualified borrowers and the marginal return from an average loan is greater than the interest paid on the excess reserves. IE they have to receive a marginal return of X amount above .25% they now receive on their excess reserves from a borrower SO 1. They have to loan demand 2. Qualified borrower 3. Net marginal return of higher than the amount of interest they receive on their reserves.
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A debt is something you owe someone, a loan is something you borrow
What is the difference between a car loan?
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What is the difference between home equity and a home loan?
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What is the difference between share capital and bank loan?
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What is the difference between loan syndication and consortium finance?
The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.
