Apr 6, 2009 06:19
15 yrs ago
5 viewers *
Italian term
costo del credito
Italian to English
Bus/Financial
Finance (general)
performance indicators
Rettifiche nette su crediti/crediti netti verso clientela (costo del credito)
This is a standard indicator of performance used by the Bank of Italy. The impairment charge for the year divided by net lending. It is what it costs a bank to lend before it receives any interest. I have never been able to find this ratio used in the US or UK.
The "cost of credit" is clearly the cost a borrower pays to acquire credit in English.
This is a standard indicator of performance used by the Bank of Italy. The impairment charge for the year divided by net lending. It is what it costs a bank to lend before it receives any interest. I have never been able to find this ratio used in the US or UK.
The "cost of credit" is clearly the cost a borrower pays to acquire credit in English.
Proposed translations
(English)
Proposed translations
4 hrs
Selected
loan loss ratio/[loan loss provision ratio/loan loss reserve ratio]
loan loss ratio = value of loans written off (in period)/total portfolio
Forward-looking indicators of risk based on management estimates rather than actual losses:
bad debt provision for the period (i.e. income statement) divided by portfolio = loan loss provision ratio
cumulative provisions (i.e. balance sheet) divided by portfolio = loan loss reserve ratio
Naturally here the provision/reserve distinction comes from classic US accounting terminology.
Also referred to frequently NPL ratio (a slightly different beast) would be value of NPLs divided by portfolio.
http://www.allfactors.com/node/8
"On costs for Citigroup we continue to believe we’ll be at $50 to $52 billion as .... corporate default rates and our corporate loan loss ratio at the top."
"Loan Loss Ratio-Based Models. Estimate loan loss risk by SIC sector. ... Big Three Dealers: J.P. Morgan Chase, Bank of America, Citigroup."
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Note added at 4 hrs (2009-04-06 10:43:33 GMT)
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Yes, in fact HBOS, ROBS, Barclays, HSBC do use loan loss rate. I think you could use the term even if actual formula differs (a matter of convention) and no doubt the document actually defines the ratio somewhere (as with your Barclays reference)
Forward-looking indicators of risk based on management estimates rather than actual losses:
bad debt provision for the period (i.e. income statement) divided by portfolio = loan loss provision ratio
cumulative provisions (i.e. balance sheet) divided by portfolio = loan loss reserve ratio
Naturally here the provision/reserve distinction comes from classic US accounting terminology.
Also referred to frequently NPL ratio (a slightly different beast) would be value of NPLs divided by portfolio.
http://www.allfactors.com/node/8
"On costs for Citigroup we continue to believe we’ll be at $50 to $52 billion as .... corporate default rates and our corporate loan loss ratio at the top."
"Loan Loss Ratio-Based Models. Estimate loan loss risk by SIC sector. ... Big Three Dealers: J.P. Morgan Chase, Bank of America, Citigroup."
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Note added at 4 hrs (2009-04-06 10:43:33 GMT)
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Yes, in fact HBOS, ROBS, Barclays, HSBC do use loan loss rate. I think you could use the term even if actual formula differs (a matter of convention) and no doubt the document actually defines the ratio somewhere (as with your Barclays reference)
Note from asker:
| Hi Paul, thanks for putting me on the right track. Barclays define as follows: Risk management Loan loss rate The loan loss rate represents the impairment charge on loans and advances as a proportion of the balances. |
| Doing a few calcs on their tables, this is gross loans divided by impairment charge for the year, while the Italian indicator here is on crediti netti, which I imagine is the loans less the provision/reserve or as Barcalys term it the "allowance" (to mix mid Atalantic terms). |
| The context I gave is in a list of performance indicator highlights and as you can see it is already defined and I have always translated with cost of lending, which a major auditor accepted (wrongly in my opinion). It now appears more prominently without a nearby definition. |
| Talking to one "investor relator" contact. A) Line was bad, but there are no cumulative provisions any more?!!! b) the net is net of repayments on loans. C) Happy to use "loan loss ratio" but, but, analysts use the term "cost of credit" not just speaking but also in reports. I'm waiting for a report to see it. |
4 KudoZ points awarded for this answer.
Comment: "Still waiting to see "cost of credit" in an analyst's report.
Thank's Paul"
14 mins
cost of credit/ credit charges
credit charges
Gloss.;Haensch/Haberkamp,Dict.Agriculture
24/09/2003
cost of credit
BTB Economics Gloss.;Haensch/Haberkamp
Gloss.;Haensch/Haberkamp,Dict.Agriculture
24/09/2003
cost of credit
BTB Economics Gloss.;Haensch/Haberkamp
Note from asker:
| This is a measure of what it costs a bank to lend, the opposite of the cost of credit Constantinos. |
| Thank you Constantinos |
14 mins
cost of credit
I realise how the answer may seem so straight forward, but maybe there is some hidden message in your request?
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Note added at 21 mins (2009-04-06 06:40:46 GMT)
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Cost of lending and investing
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Note added at 21 mins (2009-04-06 06:40:46 GMT)
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Cost of lending and investing
Note from asker:
| The cost of credit is what a customer of a bank pays to borrow. This is a measure of what it costs a bank to lend, the opposite of the cost of credit Earnest. |
| Thank you Earnest |
23 mins
cost of lending and investing
costo dei prestiti e degli investimenti: Dizionario di economia, Banca e Borwsa - Codeluppi
1 hr
Paul O'Brien
Argentina
Argentina
Native in English
Specializes in field
Argentina
Legal and environment specialist, PhD
Native in: English 
Works in: Italian to English, Spanish to English, English
Related KudoZ points
:
176
cost of giving credit
Note from asker:
| Thanks Pauley |
1 hr
institutional cost of lending
or
cost of lending to the institution/bank
specifying the institution (rather than the client cost)
cost of lending to the institution/bank
specifying the institution (rather than the client cost)
Note from asker:
| Thank you Wordgirl |
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