Provision for Credit Losses
Definition
- The amount deducted from income that is equal to the amount a bank adjusts its loan balances to reflect anticipated losses on the loans.
Relevant Locations
Canada
Synonyms
bad debt expense, allowance for doubtful accounts, allowance for credit losses
Acronyms
PCL
Related Terms and Acronyms
- Bank — Definition,
- An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
- Credit Risk — Definition,
- The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
- Deductions — Definition,
- Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loss — Definition,
- When expenses are larger than revenues.
- Principal — Definition,
- The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
- Remaining Balance — Definition,
- Unpaid principal on a loan.
