allowance for loan and lease losses
(ALLL)
Noun
The asset-contra asset reported on the balance sheet showing the accumulated estimated amounts of impaired financial assets that will not be collected as of the balance sheet date, it reducing the carrying amount of loans and lease receivables by the amount charged (provisioned) against earnings to absorb impairment losses.
Synonym(s):
- allowance for credit impaired assets; allowance for credit losses; allowance for loan losses; loan loss reserve (LLR); loss allowance; reserve for bad debts.