loan loss provision

简明释义

风险准备金

英英释义

例句

1.Investors are concerned about the rising loan loss provision in the quarterly report.

投资者对季度报告中上升的贷款损失准备金表示担忧。

2.The bank increased its loan loss provision to prepare for potential defaults due to economic downturn.

为了应对经济衰退可能带来的违约，银行增加了其贷款损失准备金。

3.During the financial crisis, many institutions had to adjust their loan loss provision significantly.

在金融危机期间，许多机构不得不显著调整其贷款损失准备金。

4.The loan loss provision helps banks manage risk and maintain financial stability.

该贷款损失准备金帮助银行管理风险并维持财务稳定。

5.A higher loan loss provision indicates that the bank is anticipating more loan defaults.

更高的贷款损失准备金表明银行预计会有更多的贷款违约。

作文

In the world of finance, understanding the terms used by banks and financial institutions is crucial for both professionals and consumers. One such term that plays a significant role in risk management is loan loss provision. This concept refers to the amount of money that banks set aside to cover potential losses from loans that may not be repaid. Essentially, it acts as a buffer against the uncertainties associated with lending money. The loan loss provision is important because it helps banks maintain their financial health and stability by preparing for potential defaults. When a bank issues a loan, there is always a risk that the borrower may fail to repay it. This could be due to various reasons, such as economic downturns, personal financial crises, or poor credit history. To mitigate this risk, banks assess the likelihood of default and allocate a certain percentage of the total loans as a loan loss provision. This practice is not only prudent but also a regulatory requirement in many jurisdictions. Regulatory bodies often mandate that banks maintain adequate reserves to ensure they can absorb losses without jeopardizing their operations.The calculation of the loan loss provision involves a detailed analysis of the bank's loan portfolio. Financial institutions typically categorize loans based on their performance. For example, performing loans are those that are being paid back on time, while non-performing loans are those that are overdue. The higher the number of non-performing loans, the greater the loan loss provision that the bank needs to establish. This provisioning process is crucial during economic downturns when the likelihood of defaults increases significantly. By setting aside these funds, banks can reassure investors and regulators that they are taking proactive steps to manage risk.Moreover, the loan loss provision impacts a bank's profitability. When banks increase their provisions, it reduces their net income for that period. However, this is a necessary trade-off to ensure long-term stability. Investors often look at the level of loan loss provision as an indicator of a bank's risk management practices. A consistently high provision may signal that a bank is anticipating higher defaults, which could affect its stock price. Conversely, a low provision might indicate that a bank is overly optimistic about its borrowers’ ability to repay loans.In summary, the loan loss provision is a critical aspect of banking that reflects the institution's approach to risk management and financial prudence. It serves as a safety net for banks, allowing them to navigate through periods of economic uncertainty while maintaining confidence among stakeholders. Understanding this term is essential for anyone involved in finance, whether as a professional or as a consumer looking to comprehend how banks operate and manage risks associated with lending. By grasping the significance of the loan loss provision, individuals can make more informed decisions regarding their finances and investments, ultimately contributing to a more robust financial ecosystem.

在金融领域，理解银行和金融机构使用的术语对专业人士和消费者都至关重要。其中一个在风险管理中发挥重要作用的术语是贷款损失准备金。这个概念指的是银行为覆盖可能无法偿还的贷款而预留的资金。基本上，它充当了对借钱的不确定性的一种缓冲。贷款损失准备金的重要性在于它通过为潜在违约做好准备，帮助银行维持其财务健康和稳定。当银行发放贷款时，总是存在借款人可能未能偿还的风险。这可能是由于各种原因，例如经济衰退、个人财务危机或信用记录不良。为了降低这种风险，银行评估违约的可能性，并将一定比例的总贷款作为贷款损失准备金进行分配。这一做法不仅是谨慎的，而且在许多司法管辖区也是监管要求。监管机构通常要求银行保持足够的储备，以确保它们能够吸收损失而不危及其运营。贷款损失准备金的计算涉及对银行贷款组合的详细分析。金融机构通常根据贷款的表现对其进行分类。例如，表现良好的贷款是按时偿还的贷款，而不良贷款是逾期的贷款。不良贷款的数量越高，银行需要建立的贷款损失准备金就越大。在经济衰退期间，这一准备过程尤为关键，因为违约的可能性显著增加。通过预留这些资金，银行可以向投资者和监管机构保证，它们正在采取积极措施来管理风险。此外，贷款损失准备金会影响银行的盈利能力。当银行增加其准备金时，会减少该时期的净收入。然而，这是确保长期稳定所必需的权衡。投资者通常将贷款损失准备金的水平视为银行风险管理实践的指标。持续较高的准备金可能表明银行预计会有更高的违约，这可能会影响其股价。相反，较低的准备金可能表明银行对借款人的偿还能力过于乐观。总之，贷款损失准备金是银行业务的一个关键方面，反映了该机构对风险管理和财务谨慎的态度。它为银行提供了一种安全网，使其能够在经济不确定时期航行，同时在利益相关者中保持信心。理解这一术语对于任何涉及金融的人来说都是必不可少的，无论是作为专业人士还是作为希望理解银行如何运作和管理与贷款相关风险的消费者。通过掌握贷款损失准备金的重要性，个人可以更明智地做出有关其财务和投资的决策，从而最终促进更强大的金融生态系统。