Allowance for Loan and Lease Losses

Under generally accepted accounting principles, banks must maintain an allowance for loan and lease losses (ALLL) that is adequate to absorb estimated credit losses associated with their loan and lease portfolios. Follow the links on this page for accounting resources and regulatory resources related to the ALLL.

References

Allowance for Loan and Lease Losses (OCC 2006-47, December 2006), Interagency Statement, Q&A
Revises the 1993 policy statement on allowance for loan and lease losses issued by the federal financial regulatory agencies

See also Accounting