##  [Loan Loss Provisioning](/index.php/loan-loss-provisioning) 

  ##  [Loan Loss Provisioning](https://social.quantumdictionary.io/loan-loss-provisioning-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

The accounting and risk‑management process by which an institution estimates and records a provision (allowance) for expected credit losses on loans and related credit exposures, reducing carrying value or recognising an expense in the period to reflect current information and forward‑looking expectations about borrower default, exposure and loss given default.