A further e1/40.9bn in bad debts
will be heading to Estia, a government plan to assist, support and protect vulnerable households who have mortgaged their primary residences for loans.
Global Banking News-July 17, 2017--Chinese president calls on state-owned firms to control bad debt
In distinguishing business and non-business bad debts
, the question that must be asked is: Does the loss bear a "proximate" relation to the taxpayer's trade or business?
Good bad debt
management is about good credit control and preventing debts getting old minimises exposure.
Four years ago, bad debts
portfolio represented 30 per cent of the total credit portfolio, which the bank successfully reduced to 5 per cent during the previous fiscal year that ended in 30 June 2012.
Regulators said banks are encouraged to lend more to help fuel faster growth of the economy, but at the same time required to keep their exposure to bad debts
within manageable levels.
IRC Section 166(d)(1) allows a taxpayer to deduct bad debt
incurred as a part of the taxpayer's trade or business in the year the debt becomes worthless.
The issue is not thought to be on the immediate agenda of the BHA, however one sales executive discussed bad debts
with new chief executive Paul Bittar during a recent visit to Newmarket and said Bittar "listened and seemed to understand it very quickly," adding: "You wouldn't expect him to be able to address it immediately but hopefully he will look at it soon."
For the most part, the banks reporting Wednesday followed the trend laid out by European leaders HSBC (HSBA.L) and BNP Paribas (BNPP.PA) showing bad debts
Its first quarter performance marks a significant turnaround on the pounds 6.3bn losses reported for 2009 after the HBOS takeover and financial crisis left Lloyds with a colossal pounds 24bn in bad debts
LLOYDS Banking Group flagged up a return to profit this year after reporting a better picture on bad debt
Chairman Sir John Egan said the group had "remained focused on delivering further improvements in efficiency, processes and standards, as well as successfully managing impacts from the economic environment, such as bad debts
and consumption level."