Term:
Loan loss provisioning
Definition:
Making provisions for losses on loans. Till 1988 the Bank made loan loss provisions only against loans to specific borrowers whose arrears persisted for an extended period of time. In May 1988, owing to the increased number of member countries in prolonged non-accrual status, the Bank established a single consolidated loan provision applicable to the entire set of countries in non-accrual status. See country collectibility analysis, note.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt