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Allowance for Loan and Lease Losses (ALLL), originally referred to as the reserve for bad debts, is a valuation reserve established and maintained by charges against a bank's operating income. It is an estimate of uncollectible amounts used to reduce the book value of loans and leases to the amount that a bank expects to collect.
Allowance for Loan and Lease Losses (Comptroller's Handbook, May 1998) Addresses requirements for evaluating, reporting, and accounting considerations that affect allowances for loan and lease losses
Interagency Policy Statement on the Allowance for Loan and Lease Losses (OCC 2006-47, December 2006), Statement, FAQ Covers key concepts and requirements for ALLL supervisory guidance and GAAP
Policy Statement on ALLL Methodologies and Documentation for Banks and Savings Institutions (OCC 2001-37, July 2001), Guidance (Federal Register, July 6, 2001) Provides guidance on the design and implementation of ALLL methodologies and supporting documentation
Joint Interagency Letter to Financial Institutions (July 12, 1999) Addresses efforts to provide a consistent message on the allowance for loan losses
Joint Interagency Statement (November 24, 1998) Addresses consistent application of loan loss accounting policy and the transparency of financial statements
See also Accounting
Shared National Credit (SNC) Report
Quarterly Report on Bank Trading and Derivatives Activities
Mortgage Metrics Report
