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loan-loss allowance UK US noun [C] (also loan-loss provision [C], loan-loss reserves [plural])
► ACCOUNTING, BANKING in a bank’s accounts, an amount showing what it expects to lose from loans that may not be paid back: »
The loan-loss allowance allocated to foreign loans was the highest on the bank's books.
»Despite a 26% improvement in its net income, the bank failed to meet Wall Street's expectations because it had to double its loan loss provision.
Financial and business terms. 2012.