ALLL

Business & Finance abbreviation · Banking

ALLL
Stands forAllowance for loan and lease losses
CategoriesBusiness & Finance

ALLL stands for Allowance for loan and lease losses, a banking abbreviation.

Balance-sheet reserve, deducted from a bank's gross loans, that estimates the portion of loans and leases that will not be collected. It is built up through loan loss provisions and reduced by charge-offs.

Example: The ALLL equaled 1.6 percent of total loans at year-end.

Usage notes

The term comes from US bank regulatory reporting. Since banks adopted the CECL standard, the reserve is generally called the allowance for credit losses (ACL). Regulators compare the ALLL with nonperforming loans to judge whether reserves are adequate.

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