loan-loss allowance
noun [ C ]
ukus(also loan-loss provision [ C ]); (loan-loss reserves [ plural ]) ACCOUNTING, BANKING
in a bank’s accounts, an amount showing what it expects to lose from loans that may not be paid back:
The loan-loss allowance allocated to foreign loans was the highest on the bank's books.
Despite a 26% improvement in its net income, the bank failed to meet Wall Street's expectations because it had to double its loan loss provision.