Question

explain general provisions​

Answer 1

General provisions are balance sheet items representing funds set aside by a company as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord. General provisions on the balance sheets of financial firms are considered to be a higher risk asset, because it is implicitly assumed that the underlying funds will be in default in the future.

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Answer 2

Answer:

General provision are balance sheet item representing fund set aside by a company as assets to pay for anticipated future losses. For a bank, general provision is considered to be supplementary capital under the first Basel Accord.