Doubtful
What does it mean
Regulatory Definition: An asset classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Why does it matter
Bank regulators closely monitor and exert significant influence over bank performance through their established rules and guidance. Hence, it is crucial for banks to comprehend regulatory terminology. This understanding enables them to identify loan relationships that align with regulatory criteria or to defend those that don't meet the specified standards.
Other Relevant Terms
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