Banks shall, according to the principle of prudent accounting, reasonably estimate the possible losses of loans and make timely provision for loan losses. Loan loss preparation includes general preparation, special preparation and special preparation. General reserve is a reserve drawn according to a certain proportion of the total loan balance, which is used to make up for unidentified possible losses; Special preparation refers to the preparation for making up special losses according to the loss degree of each loan after the loans are classified according to the Guiding Principles of Loan Risk Classification. Special provision refers to the provision for a country, region, industry or a certain type of loan risk.
Two, the loan loss reserve includes
Loan loss provision usually includes the following three items: general provision (also known as general provision), special loss provision and special provision. Loan loss provision refers to the impairment provision made by the bank in accordance with relevant regulations when there is objective evidence to prove that the loan is indeed impaired. This project is the difference between the present value and book value of the estimated loan recovery funds. Introduction of loan loss provision types 1. General reserve: financial enterprises engaged in deposit and loan business shall draw loan loss reserve from all loan balances according to a certain proportion to make up for unidentified possible losses. For example, the general reserve ratio of China Commercial Bank is 65438+ 0% of the loan balance at the end of the year; 2. Special loss reserve: according to the loan risks determined or stipulated in the loan portfolio, the loss reserve is withdrawn according to a certain proportion to ensure that the lost loans are compensated in time and fully. The special reserve is an important matter for commercial banks to withdraw under special circumstances such as financial crisis and political turmoil. 3. Special reserve: according to the internal loss degree of loans and the classification results of loan risks, according to certain risk weights, prepare for the losses accrued by various loans.
3. What is the loan loss reserve?
Reserves drawn at a fixed ratio of loan balance 1 are used to cover bad debt losses. 10 cheque: a bill issued by the drawer, which requires banks or other financial institutions that handle cheque deposit business to unconditionally pay a certain amount to the payee or holder at sight. Can be divided into: cash check, transfer check, ordinary check, crossed check. Transfer checks and crossed checks can only be used for transfer; Cash checks and ordinary checks can only be used to withdraw cash.
4. What is the subject of loan loss provision?
The loan loss reserve belongs to the asset class. First, this course accounts for enterprise value preparation. Assets for loan loss provision include discounted assets, borrowed funds, customer loans, syndicated loans, trade financing, agreed overdrafts, credit card overdrafts, refinancing and advances. The impairment provision accrued by the enterprise (insurance) insured and the impairment provision accrued by the mortgage loan are also accounted for in this account. Enterprises entrust banks or other financial institutions to lend to other units, and can change this subject to "1304 entrusted loan loss reserve".