Allocated Transfer Risk Reserve

Allocated Transfer Risk Reserve

An allowance for bad debts that a bank keeps in order to protect against country risk. For example, a bank may keep an ATRR in case a country renders its currency inconvertible, which would prevent a foreign borrower in that country from making payments.
References in periodicals archive ?
A banking institution shall establish an allocated transfer risk reserve (ATRR) for specified international assets when required by the Board in accordance with this section.
2 million of Ecuadorian exposure initially becoming subject to a 90% allocated transfer risk reserve (ATRR) requirement.
2 million which is subject to a 90% Allocated Transfer Risk Reserve (ATRR) requirement.
These charge-offs reduced the allocated transfer risk reserve for Brazilian debt to $2 million from $21 million on March 31.
The committee also recommends the level of charge-off or Allocated Transfer Risk Reserve (ATRR) in those countries where debt service has been interrupted for a protracted period of time.
These actions reduced Brazilian term outstandings to approximately $86 million and the allocated transfer risk reserve to $21 million on Sept.
announced today that its results for the year ended December 31, 1999 and the first nine months of 2000 will be restated primarily to record provisions for allocated transfer risk reserves (ATRR) similar to amounts recorded in Hamilton Bank's regulatory call reports.
Based on these considerations, the Congress required that banks set aside specific allocated transfer risk reserves (ATRR) against credits that have been impaired by a protracted inability of foreign borrowers to make payments on their external indebtedness.