Bad loans normally do affect future income.

Allowance for Loan Losses (ALL) is the asset item, and Provision for Loan Losses (PLL) is the non-cash expense item before profit loss.

Off-balance sheet items of banks do not expose to risks.

In looking at comparative balance sheets, it can be seen that large banks rely more heavily on non deposit borrowings while small banks rely more heavily on deposits.

The number one source of revenue for a bank based on volume is usually loan income.

Are these statements true or false? Explain

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Bad loans normally do affect future income True Bad loans typically result in a loss of income for banks When loans become nonperforming or default it ... View the full answer