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 which is subject to a 90% Allocated Transfer Risk Reserve (ATRR) requirement.
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.