20-20 When a substandard loan is identified by a regulator,it is required that the loan immediately be charged off by the bank.

Question

Quizplus · Accepted Answer

When a substandard loan is identified by a regulator, the bank is required to make a provision for the potential loss on the loan, but it is not necessarily required to charge off the loan immediately. The decision to charge off the loan may depend on the specific circumstances of the loan and the bank's assessment of its potential to recover the funds.

20-20 When a Substandard Loan Is Identified by a Regulator,it