Allowance for Loan and Lease Losses (ALLL) and Loan Loss Allowance for Loan and Lease Losses (ALLL) and Loan Loss Loan Loss Provision Definition - for loan losses - Deloitte United StatesDifference: Loan loss allowance (LLA) and loan loss provisions (LLP) are the same, they mean the same thing. Accountants call it LLA while bankers/regulators call it ;· Allowance for Loan and Lease Losses (ALLL) VS Provision for Loan Losses The difference between ALLL and Provisions for Loan Losses is that the the Provisions are the amount being added to or subtracted from the ALLL which is the total amount. So Provisions for Loan Losses is the amount the lender has moved in or out of ALLL that quarter (or period) while ALLL is the balance being affected (increased or decreased) by the “Allowance,” usually called the “allowance for loan and lease losses” (ALLL), is on the balance sheet; the “Provision” is on the income statement. Loan loss reserve is a synonym for the ALLL. ALLL: It’s a contra account on the balance sheet reflecting the estimated amount of future loan losses. …Loan loss provisions, also known as valuation allowances, are an expense set aside as an allowance for potential uncollected loans and loan ;· The allowance for loan losses is increased when aprovision for loan losses is established. The provision for loanlosses is the current period expense for loan losses established inthe current
