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Banker Resource Center

Allowance For Loan and Lease Losses (ALLL)

The ALLL is a valuation allowance against total loans held for investment and lease financing receivables. It represents an amount considered to be appropriate to cover estimated credit losses in the current loan portfolio and its purpose is to absorb net charge-offs likely to be realized.

Supervisory Resources

Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.