provision for possible loan loss

简明释义

贷款呆帐损失准备

英英释义

例句

1.The increase in the provision for possible loan loss reflects the bank's concerns about the economy.

增加的可能贷款损失准备金反映了银行对经济的担忧。

2.During the financial audit, the accountant reviewed the provision for possible loan loss to assess the bank's risk exposure.

在财务审计期间，会计师审查了可能贷款损失准备金以评估银行的风险敞口。

3.The bank set aside a significant provision for possible loan loss to ensure it can cover any defaults.

银行预留了大量的可能贷款损失准备金，以确保能够应对任何违约情况。

4.Investors often look at the provision for possible loan loss as an indicator of a bank's financial health.

投资者通常将可能贷款损失准备金视为银行财务健康状况的一个指标。

5.Management decided to enhance the provision for possible loan loss due to rising delinquency rates.

由于拖欠率上升，管理层决定增加可能贷款损失准备金。

作文

In the world of finance, managing risks is crucial for the stability and growth of any lending institution. One important concept in this realm is the provision for possible loan loss, which refers to the funds that banks set aside to cover potential losses from loans that may not be repaid. This practice is essential for maintaining the financial health of a bank and ensuring that it can continue to operate effectively even in challenging economic conditions.When a bank issues a loan, there is always a risk that the borrower may default, meaning they fail to repay the loan as agreed. This could happen for various reasons, such as job loss, economic downturns, or other unforeseen circumstances. To mitigate this risk, banks create a provision for possible loan loss by allocating a portion of their profits to cover these potential losses. This allocation is usually based on historical data, current economic conditions, and the creditworthiness of borrowers.The importance of having a provision for possible loan loss cannot be overstated. It acts as a financial cushion that helps banks absorb losses without jeopardizing their overall operations. Moreover, regulatory bodies often require banks to maintain adequate provisions to ensure they remain solvent and can meet their obligations to depositors and creditors. Failure to adequately provision for loan losses can lead to severe consequences, including insolvency and loss of public trust.In addition to safeguarding the bank's financial health, the provision for possible loan loss also plays a significant role in promoting transparency and accountability. By publicly reporting their loan loss provisions, banks provide stakeholders with insights into their risk management practices and the quality of their loan portfolios. This transparency is vital for investors, regulators, and customers who rely on the bank's stability and integrity.Furthermore, the process of determining the appropriate level of provision for possible loan loss requires careful analysis and judgment. Banks must assess various factors, including the economic environment, industry trends, and individual borrower circumstances. This assessment is often conducted by specialized teams within the bank that focus on credit risk management. Their expertise ensures that the provisions are not only adequate but also aligned with the bank's overall risk appetite and strategic objectives.In conclusion, the provision for possible loan loss is a fundamental aspect of prudent financial management for banks. It reflects their commitment to responsible lending practices and their ability to navigate uncertainties in the financial landscape. By setting aside funds to cover potential losses, banks can protect themselves against defaults and maintain their operations even during tough times. As such, understanding this concept is essential for anyone interested in finance, banking, or investment, as it highlights the importance of risk management in achieving long-term financial stability.

在金融世界中，管理风险对任何贷款机构的稳定和增长至关重要。在这个领域中，一个重要的概念是可能贷款损失准备金，指的是银行为覆盖可能无法偿还的贷款损失而预留的资金。这种做法对于维护银行的财务健康以及确保其在困难经济条件下能够继续有效运作至关重要。当银行发放贷款时，总是存在借款人可能违约的风险，这意味着他们未能按照约定偿还贷款。这可能由于各种原因发生，例如失业、经济衰退或其他不可预见的情况。为了减轻这种风险，银行通过将部分利润分配用于覆盖这些潜在损失来创建可能贷款损失准备金。这种分配通常基于历史数据、当前经济条件和借款人的信用状况。拥有可能贷款损失准备金的重要性不容小觑。它充当了一个金融缓冲，帮助银行吸收损失，而不会危及其整体运营。此外，监管机构通常要求银行维持足够的准备金，以确保其保持偿付能力，并能够满足对存款人和债权人的义务。如果未能充分准备贷款损失，可能会导致严重后果，包括破产和公众信任的丧失。除了保护银行的财务健康外，可能贷款损失准备金在促进透明度和问责制方面也发挥着重要作用。通过公开报告其贷款损失准备金，银行向利益相关者提供了有关其风险管理实践和贷款组合质量的见解。这种透明度对于依赖银行稳定性和诚信的投资者、监管者和客户至关重要。此外，确定适当的可能贷款损失准备金水平的过程需要仔细分析和判断。银行必须评估各种因素，包括经济环境、行业趋势和个别借款人的情况。这个评估通常由银行内部专门关注信用风险管理的团队进行。他们的专业知识确保准备金不仅充足，而且与银行的整体风险承受能力和战略目标相一致。总之，可能贷款损失准备金是银行审慎财务管理的基本方面。它反映了银行对负责任贷款实践的承诺，以及其应对金融环境不确定性的能力。通过预留资金以覆盖潜在损失，银行可以保护自己免受违约的影响，甚至在艰难时期保持运营。因此，理解这一概念对于任何对金融、银行或投资感兴趣的人来说都是至关重要的，因为它突显了风险管理在实现长期财务稳定中的重要性。