Question: Hello, i am facing difficulty in solving this question, can you help please : Bank XYZ expects its loan portfolio to grow by 25% during

Hello, i am facing difficulty in solving this question, can you help please :

Bank XYZ expects its loan portfolio to grow by 25% during 2019. The bank

decides to set its allowance / provision for loan losses at 2% of total loans at

the end of the year (total loans = 2 billion EGP). During the year, the bank

expects to charge off 20 million EGP. Its allowance for loan losses was 40

million at the beginning of 2019. What is the amount of new loan loss

provision the bank should build in 2019?

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