Expected risk loss rate is the degree to which a certain number of dangerous units may suffer losses in a certain period of time.

Expected risk loss rate = actual loss amount/number of accidents × 100%.

Because of its high risk loss rate, banks need to increase their bad debt reserves to resist the losses caused by risks and reduce the number of loans to reduce risks.

Bank's provision for loan loss of corporate credit 20 17.

In the column of professional qualification of banks, we have carefully prepared the Loan Loss Reserve 20 17 for the majority of candidates. Let's study quickly and be fully prepared. I wish all students good luck in the exam.

Provision of loan loss reserve

1 1.3. 1 the meaning and types of loan loss provision.

1. The meaning of loan loss reserve

From the perspective of pre-risk management, loan losses can be divided into expected losses and unexpected losses. Usually, banks will raise capital to make up for unexpected losses and withdraw reserves to make up for expected losses.

2. Types of loan loss reserves

Commercial banks generally withdraw three kinds of loan loss reserves: general reserve, special reserve and special reserve.

1 1.3.2 Base and proportion of loan loss reserve

1. Loan loss reserve extraction base

There are three bases for the provision of general reserves: one is to choose the total loan balance as the base; Second, in order to avoid double calculation of general reserve and special reserve, the balance after deducting special reserve from all loans is selected as the base; Third, choose normal loan balance or normal loan plus concerned loan balance as the base.

2 loan loss reserve provision ratio

(1) General provision accrual ratio.

(two) the proportion of special reserve.

(3) the proportion of special reserves.

1 1.3.3 loan loss reserve principle

1. The loan loss reserve shall meet the requirements of prudent accounting principles.

2. The principle of timely and sufficient provision for loan losses should be adhered to.

1 1.3.4 loan loss reserve extraction method

The basic steps for commercial banks to accrue loan loss reserves are as follows:

1. Set aside a special reserve for large amount of non-performing loans one by one.

2. Other special reserves for "abnormal loans" extracted according to the classification results.

3. Special preparation for "abnormal loans" homogeneous loans

4. Withdraw the general reserve for normal loans.

5. Provision of special reserve

6. Summarize all kinds of reserves

7. Adjust the overall level of loan loss reserve according to other factors.

How to calculate the liquidated damages for bank mortgage in loans overdue?

① If the grace period is stipulated in the contract, the late payment fee will not be deducted;

(2) After the payment is overdue, contact the loan bank in time to explain the situation;

③ One or two short-term overdue will not affect the credit history;

(4) If the loan is overdue for many times, the bank may recover the loan and record the bad credit.

The law stipulates that the liquidated damages shall not exceed 30% of the contract amount. If the liquidated damages agreed in your loan contract do not exceed 30% of the loan amount, you should pay as promised when you breach the contract. If the liquidated damages exceed 30%, there is no need to pay the excess, because it has exceeded the legal limit, and the excess is illegal and invalid.

legal ground

Article 577 of the Civil Code of People's Republic of China (PRC). If one party fails to perform its contractual obligations or fails to meet the contract obligations, it shall bear the liabilities for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 of the Civil Code of People's Republic of China (PRC): If one of the parties who is expected to bear the liability for breach of contract clearly expresses or shows by his own behavior that he will not perform the contractual obligations, the other party may request him to bear the liability for breach of contract before the expiration of the performance period.

Article 579 of the Civil Code of People's Republic of China (PRC): Actual performance of monetary debts If one party fails to pay the price, remuneration, rent and interest or fails to perform other monetary debts, the other party may demand a notice.

The scope of damages in Article 584 of the Civil Code of People's Republic of China (PRC) If one party fails to perform its contractual obligations or the performance of contractual obligations is not in conformity with the agreement, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.

Calculate the expected loss of the loan

EL=PDLGDEAD

So: EL=0.05%75% 100000=37.5 yuan.

In fact, PD and LGD are not so detailed and accurate. EL model only calculates the expected value of losses, which can be provided to commercial banks to extract capital reserves to cover the occurrence of risks.

This concludes the introduction on how to calculate the expected loan loss and how to calculate the interest of the expected loan loss. I wonder if you have found the information you need?