Loan-loss reserves set aside to cover a particular loan or loans expected to be a problem or loans that represent above-average risk are known as specific reserves.

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Specific reserves are set aside to cover specific loans that are expected to be problematic or represent above-average risk. This is in contrast to general reserves, which are set aside to cover potential losses across the entire loan portfolio.

Loan-Loss Reserves Set Aside to Cover a Particular Loan or Loans