Banking
ECL Stage 3 — Credit-Impaired Loan Provision
Provisioning at full lifetime ECL for a loan that is objectively credit-impaired (NPL).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Charge (ECL Stage 3) | Expense (+) | 600,000.00 | - |
| Allowance for ECL (Stage 3) | Contra-Asset (+) | - | 600,000.00 |
💡 Accountant's Note
Stage 3 loans have evidence of default — 90+ days past due, bankruptcy, fraud. The provision covers the entire expected lifetime loss, net of the expected recovery value of collateral.
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