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) Establishment of Allocated Transfer Risk Reserve. 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.
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.
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.