Expected Credit loss?

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Expected Credit Loss is the estimated loss that a company will experience from customers who fail to pay their debts.

Expected Credit Loss is calculated based on historical data, current economic conditions, and other relevant factors.
It is an important metric for financial institutions to assess the risk of their loan portfolios.
For example, if a bank expects 5% of its customers to default on their loans, the Expected Credit Loss would be 5% of the total loan amount.
Companies use Expected Credit Loss to set aside reserves for potential losses and to make informed decisions about lending.
Regulatory bodies may also require companies to report their Expected Credit Loss as part of their financial disclosures.

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