Loan Loss Provision
An expense set aside as an allowance for bad loans (customer defaults, or terms of a loan have to be renegotiated, etc). Investopedia Says:
This would be a bank's equivalent of a manufacturing company's allowance for returns on goods sold.
Also know as a valuation allowance or valuation reserve. Related Terms:
Creditor
Loan
Loan Sharking
Loan Syndication |