BROWSE

Bad Debt Reserve

What is 'Bad Debt Reserve'

An account set aside by a company to account for and offset losses that arise as a result of defaults from futures loans. This figure may be calculated based on historical norms or other known information about the relative safety of the debt.

Also known as a "loss reserve".

Explaining 'Bad Debt Reserve'

Bad debt reserves become alarming when they reach levels outside of historical norms or averages, either at the company level or the national level. For instance, there are many concerns today about China's high bad debt reserves at its banks, an aftereffect of many years of almost non-existent lending requirements.


Further Reading


Financial stability, the trilemma, and international reserves
www.aeaweb.org [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …

Bad debts: assessing China's financial influence in great power politicsBad debts: assessing China's financial influence in great power politics
www.mitpressjournals.org [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …

Foreign currency debt, financial crises and economic growth: A long-run viewForeign currency debt, financial crises and economic growth: A long-run view
www.sciencedirect.com [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …

Leveraged network-based financial acceleratorLeveraged network-based financial accelerator
www.sciencedirect.com [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …

International reserve holdings with sovereign risk and costly tax collectionInternational reserve holdings with sovereign risk and costly tax collection
academic.oup.com [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …

Confidence crises and public debt managementConfidence crises and public debt management
www.nber.org [PDF]
… view has been one based on the role of short-term exter- nal debts as drivers and … by domestic residents suddenly starts.7 Some illustrative calculations clarify why neither trade nor debt criteria can … A typically “bad” trade deficit in a developing coun- try might be, say, 5 percent of …


Leave a Reply

Your email address will not be published. Required fields are marked *