How to compute the PLLL

How to compute the PLLL -...

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Ending Balance for RLLL - Previous Period $60  Loan Write-offs This Period ($20) Loan Recoveries This Period $10  Net Loan Write-offs This Period ($10) Current Balance for RLLL Net of Write-offs and Recoveries  Current Period Reserve or Allowance for Loan & Lease Losses
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Unformatted text preview: -----------------------------------------------------------------------------------------------------How Much of a PLLL Should the Bank Take? Provisons for L&LL Specific Reserves (for impaired loans) FAS - 114 General Reserves (EL on non-impaired loans) FAS-5 Desired or Necessary RLLL (Sum of Specific and General Reserves) Provision = Necessary RLLL - Current RLLL Balance Prior to Provision es $50 $5 $55 $25 $30 $55 =$55 -$50= $5...
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How to compute the PLLL -...

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