Bank profits have restored partly because loan loss provisions have reverted to pre-crisis levels.
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Better credit quality is also allowing banks lower their loan loss provisions.
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The most remarkable feature of these results was the contribution from a steep reduction in loan loss provisions and profits from trading in government bonds.
The key trends he'll be looking for are loan-loss provisions, not to mention loan losses themselves, which he expects to be lower, but still at very elevated levels.
While the January package referred vaguely to "strengthening the legal and supervisory framework for banking, " the new deal sets minimum capital of 250 billion rupiah and makes loan-loss provisions tax-deductible.
Loan-loss provisions for its Asian subsidiaries were to blame.
In other words, instead of manipulating loan-loss provisions, or gains and losses on derivatives, banks and companies might be tempted simply to change their internal assumptions as a way to smooth earnings.
Recent regulatory changes have prompted a significant decline in loss provisions, meaning that banks will not need to set aside as high levels of reserves for potential losses and will have more capital available for other uses.
Sainsbury's said the loss reflected increased provisions for bad customer debt.
Ungar is pointing to the medical loss ratio (MLR) provisions of the law.
The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years.
Such provisions, when enacted into law, result in a loss of tax revenues, thereby reducing the amount of revenues available for state (as well as local) programs.
The Senate bill has some very strong provisions about -- that prevent insurance companies from padding their own pockets and medical loss ratio.
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