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Nonaccrual loans. E bank’s past-due loans by type of loan – consumer, commercial, agricultural, real estate – and length of delinquency. For example, the report might show delinquencies that are 30 days or less past due, those that are 30 to 89 days past due and those that are 90 days or more past due and still accruing interest (the interest income that is earned, but has not been received). By reviewing the total dollar amount of past-due loans in each category and changes among these categories, you can use the summary past-due report to track problem loan migration and forecast asset quality. When the total of each past-due category is compared with the bank’s total loans, you can gain perspective on the severity of the delinquent loans. Nonaccrual Loan Report – This summary report often shows month-to-month changes in the dollar amount of loans placed on nonaccrual status and the percentage change in these loans. Once a loan is placed on nonaccrual status, collection from the original source of repayment is unlikely. Depending on the collateral support to repay a loan, the loan may result in a loss to the bank. Moreover, because the loan no longer accrues interest, the earnings of the bank suffer. The bank may also incur increased operating costs to collect the loan (for example, attorney’s fees). Therefore, the nonaccrual report provides information on loan problems that can place a serious drain on bank earnings. Charge-offs and Recoveries Report – This report shows the dollar amount and type of loans the bank charged off and recovered during nonaccrual loans
 

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Mments received indicated concerns that the proposal was not in conformity with GAAP. A number of commenters expressed concern that such differences might diminish the integrity of bank financial reporting. While noting these concerns, the agencies also observed that in some respects where the proposal differed from GAAP, such as the areas of loss recognition and disclosure, the proposal was more conservative than GAAP. As a longstanding practice, however, the agencies have attempted to minimize differences between regulatory reporting requirements and GAAP. For that reason, the agencies recently announced in the Federal Register that the proposal has been withdrawn. The agencies have agreed to participate in projects underway by the American Institute of Certified Public Accountants (AICPA) and the Financial Accounting Standards Board (FASB) to attempt to resolve issues relating to recognizing income on nonaccrual loans and estimating credit losses on certain loans. The federal banking agencies have included guidance on certain aspects of the March 1 policy statement in the instructions for the June 30, 1991 Call Report. This issuance reiterates those policies and is intended to encourage depository institutions to continue to work with borrowers who are experiencing difficulties and to avoid restricting the availability of credit to sound borrowers, particularly in areas of the economy that may be experiencing temporary problems. Cash-basis interest recognition For partially charged-off loans where the remaining recorded balance is considered fully collectible, recognitio nonaccrual loans


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a troubled debt restructuring, unless at the time of restructuring the new interest rate was lower than the market rate for similar credit risks. In 2006, the volume of troubled debt restructurings remained stable, showing only a minor reduction of € 5 million, or 4 %. In 2005, the volume of troubled debt restructurings increased by € 30 million, or 34 %, to € 119 million as of December 31, 2005. This increase was mainly due to a single restructuring case in Western Europe. skip to content skip to main navigation-menu skip to language-switch and search form Toolbox Service Functions Download pdf Download xls Add file Print e-mail More Information 7 Loans 8 Allowances for Credit Losses Compare to 2005 skip to content skip to metanavigation skip to language-switch and search form skip to toolbox (printing and others) Main Navigation Menu Letter from the Chairman of the Management Board Deutsche Bank Group Stakeholders Management Report Risk Report Principles and Organizat

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nonaccrual loans Become 90 days past due, especially where recent payments have returned the loan to under 90 days past due. On the other hand, a review of a documented credit evaluation may substantiate whether a repayment pattern has reasonably demonstrated the borrower's future repayment capacity. Therefore, in evaluating whether a loan payment is eligible for recognition as cash-basis income, added consideration should be given to the support provided by the institution's current credit evaluation. Among the issues that should be considered is whether the credit evaluation adequately addresses the borrower's current repayment performance and provides clear evidence that the borrower has the financial capacity to sustain performance in accordance with the contractual terms of the loan. In addition, the information provided by an institution should demonstrate that the other criteria in 12 CFR 621.8(b) for cash-basis income recognition have been met. The issue of "sustained performance" is

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