Banks must maintain an ____________ adequate to absorb estimated credit losses from payday loans. Banks should evaluate the collectability of accrued fees and finance charges on payday loans and ensure that this income is appropriately measured.
Banks must maintain an ____________ adequate to absorb estimated credit losses from payday loans. Banks should evaluate the collectability of accrued fees and finance charges on payday loans and ensure that this income is appropriately measured.
Banks must maintain an Allowance for Loan and Lease Losses (ALLL) adequate to absorb estimated credit losses from payday loans. ALLL is a reserve that financial institutions set aside to cover potential loan losses, ensuring that they are prepared for the high-risk nature of payday lending. This practice ensures banks accurately measure the income from accrued fees and finance charges on payday loans and maintain a true financial condition.
Regular
Banks must maintain an Allowance for Loan and Lease Losses (ALLL) adequate to absorb estimated credit losses from payday loans. This practice ensures that banks are prepared for potential losses associated with the high-risk nature of payday lending and that they accurately report their financial condition by appropriately measuring income from accrued fees and finance charges on payday loans.