What Are Loss Reserves?

There are generally three types of loan loss reserves drawn by commercial banks: general reserves, special reserves and special reserves.

Provision for loss of payment

Right!

There are generally three types of loan loss reserves drawn by commercial banks:

In many western developed countries, how to withdraw loan loss reserves and the proportion of withdrawals are determined by commercial banks in accordance with the principle of prudence. The withdrawal standards are mainly based on the results of loan classification and

NPL provision coverage ratio = Loan loss reserve accrual balance / NPL balance.