reserve for loan losses

简明释义

贷款亏损储备金

英英释义

例句

1.During the quarterly review, the CFO reported an increase in the reserve for loan losses due to economic downturns.

在季度审查中，首席财务官报告由于经济下滑，贷款损失准备金有所增加。

2.A higher reserve for loan losses can signal to regulators that a bank is anticipating more defaults.

较高的贷款损失准备金可能向监管机构发出信号，表明银行预计会有更多违约。

3.Investors often look at the reserve for loan losses as an indicator of a bank's risk management practices.

投资者通常将贷款损失准备金视为银行风险管理实践的一个指标。

4.The financial institution adjusted its reserve for loan losses after analyzing the creditworthiness of its borrowers.

金融机构在分析借款人的信用状况后调整了其贷款损失准备金。

5.The bank set aside a significant amount in their reserve for loan losses to prepare for potential defaults.

银行为潜在的违约预留了大量资金作为贷款损失准备金。

作文

In the world of finance, banks and lending institutions must prepare for the possibility that some of the loans they issue will not be repaid. This is where the concept of reserve for loan losses comes into play. The reserve for loan losses is an accounting measure that reflects the estimated amount of loans that a bank expects to default or become uncollectible. By setting aside a certain amount of money as a reserve, banks can mitigate the impact of potential losses on their financial statements and maintain stability in their operations.The establishment of a reserve for loan losses is crucial for several reasons. First and foremost, it allows banks to adhere to regulatory requirements. Financial regulators often mandate that banks maintain adequate reserves to cover potential loan losses, ensuring that they remain solvent and capable of meeting their obligations to depositors and other creditors. This regulatory oversight helps to promote confidence in the banking system as a whole.Moreover, the reserve for loan losses serves as a buffer against economic downturns. During periods of economic instability, such as recessions, the likelihood of loan defaults typically increases. By having a reserve in place, banks can absorb these losses without jeopardizing their overall financial health. This proactive approach not only protects the bank's assets but also contributes to a more resilient economy by preventing a cascade of failures in the financial sector.When calculating the reserve for loan losses, banks typically analyze various factors, including historical default rates, current economic conditions, and the creditworthiness of borrowers. This assessment can involve complex statistical models and requires a deep understanding of both the banking industry and the broader economic landscape. As a result, the process of determining the appropriate level of reserves is both an art and a science.Additionally, the reserve for loan losses affects a bank's profitability. When a bank increases its reserve, it must recognize this expense on its income statement, which can reduce net income for that period. However, this is a necessary trade-off for long-term sustainability. Investors and stakeholders generally prefer to see a bank that is prudent in its risk management practices, even if it means lower short-term profits.In conclusion, the reserve for loan losses is a vital component of sound banking practices. It not only helps banks comply with regulations and manage risks associated with lending but also plays a significant role in maintaining the stability of the financial system. As economic conditions fluctuate, the ability of banks to effectively manage their reserves can determine their success or failure. Understanding the importance of the reserve for loan losses is essential for anyone looking to grasp the complexities of banking and finance today.

在金融世界中，银行和贷款机构必须为它们发放的一些贷款可能无法偿还的可能性做好准备。这就是贷款损失准备金概念的重要性所在。贷款损失准备金是一种会计措施，反映了银行预计将违约或无法收回的贷款金额。通过将一定金额作为准备金拨出，银行可以减轻潜在损失对其财务报表的影响，并保持其运营的稳定性。建立贷款损失准备金至关重要，原因有几个。首先，它允许银行遵守监管要求。金融监管机构通常要求银行保持足够的准备金以覆盖潜在的贷款损失，确保它们保持偿付能力，能够满足对存款人和其他债权人的义务。这种监管监督有助于促进公众对整个银行系统的信心。此外，贷款损失准备金作为经济衰退的缓冲。在经济不稳定的时期，例如衰退，贷款违约的可能性通常会增加。通过设立准备金，银行可以吸收这些损失，而不会危及其整体财务健康。这种前瞻性的方法不仅保护了银行的资产，还有助于通过防止金融部门的连锁失败来促进更具韧性的经济。在计算贷款损失准备金时，银行通常会分析各种因素，包括历史违约率、当前经济状况和借款人的信用状况。这个评估可能涉及复杂的统计模型，并需要对银行业和更广泛的经济环境有深刻的理解。因此，确定适当准备金水平的过程既是一门艺术，也是一门科学。此外，贷款损失准备金还影响银行的盈利能力。当银行增加其准备金时，必须在其损益表上确认这一费用，这可能会减少该期间的净收入。然而，这是长期可持续发展的必要权衡。投资者和利益相关者通常更喜欢看到一家在风险管理实践上谨慎的银行，即使这意味着短期利润较低。总之，贷款损失准备金是健全银行实践的重要组成部分。它不仅帮助银行遵守法规和管理与贷款相关的风险，而且在维护金融系统的稳定中发挥着重要作用。随着经济条件的波动，银行有效管理其准备金的能力可以决定其成功或失败。理解贷款损失准备金的重要性对于任何想要掌握当今银行和金融复杂性的人来说都是必不可少的。