loss reserve

Definition of "loss reserve"
  1. It's an amount set aside by a banking institution specifically designed to absorb potential losses
How to use "loss reserve" in a sentence
  1. The bank decided to increase its loss reserve after a risky investment didn't turn out as expected.
  2. Having a substantial loss reserve helps a bank maintain its financial stability in uncertain economies.
  3. The auditor questioned if the loss reserve reported by the bank was adequate enough to cover the losses from bad loans.

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