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Ebook Allowance for Loan and Lease Losses

The allowance for loan and lease losses, which was originally referred to as the “reserve for bad debts,” is a valuation reserve established and maintained by charges against the bank’s operating income. As a valuation reserve, it is an estimate of uncollectible amounts that is used to reduce the book value of loans and leases to the amount that is expected to be collected.

Few banks provided reserves for bad debts until the Internal Revenue Service (IRS) allowed the additions to such reserves to be deducted on a bank’s tax return. Although such deductions have been allowed since the passage of the Revenue Act of 1921, no clear-cut guidelines for the amount to be deducted were established until 1965, when the IRS issued Revenue Ruling 65-92. Under this ruling, a bank could make tax-deductible additions to its loan loss reserve until the reserve totaled 2.4 percent of eligible outstanding loans (as defined).

Ebook Influence of diet on pre-ingestive particle processing in bivalves I: Transport velocities on the ctenidium

Dense populations of suspension-feeding bivalve molluscs, such as oysters and mussels, play dominant roles in the ecology of coastal ecosystems. Bivalves not only convert heterogenous mixtures of suspended material into animal flesh that can be used by higher trophic levels, but also are one of the strongest interactors in shallow water benthic–pelagic coupling (Dame, 1993a,b, 1996). Through suspension-feeding activities, bivalves can strongly affect pelagic and benthic processes by removal of phytoplankton, deposition of feces and pseudofeces, and cycling of dissolved nutrients to the water column. Tight coupling may lead to stimulation of phytoplankton blooms (Lewin et al., 1975), depletion of phytoplankton (Cloern, 1982; Officer et al., 1982), changes in phytoplankton composition (Baker et al., 1998), or more complex ecosystem level effects (Dame et al., 1984; Newell, 1988; McKee, 2002).

Bivalve molluscs are exposed to a suspended food supply that varies in size, concentration, and quality, over both spatial and temporal scales. The food source includes material supplied directly from the water column or by resuspension events (Frechette et al., 1989; Judge et al., 1993). The way in which bivalves mediate benthic–pelagic processes is complicated by the fact that very few particle feeders are so simple that they merely encounter particles, engulf them, and excrete metabolic end products. Rather, in bivalves there is strong evidence that changes in the content of non-nutritive particles elicit compensatory feeding responses (Bayne et al., 1987, 1993; Iglesias et al., 1992; Barille et al., 1993; Bacon et al., 1998; Hawkins et al., 1998; Cranford and Hill, 1999; Levinton et al., 2002). Studies have also indicated differential handling of particles by bivalve pallial organs (Ward et al., 1997, 1998a) and qualitative selection (Newell and Jordan, 1983; Prins et al., 1991; MacDonald and Ward, 1994; Bougrier et al., 1997; Defossez and Hawkins, 1997; Ward et al., 1998a; Brillant and MacDonald, 2000), even of similar-sized particles (Shumway et al., 1985, 1997; Ward and Targett, 1989; Ward et al., 1997). Therefore, the way in which bivalves deal with the heterogenous mixture of suspended particles could affect the quantity and quality of material that is cycled back to the water column or delivered to the benthos via pseudofeces and feces.

Ebook Why Financial Frictions and Currency Mismatches do not Affect Traditional Mundell!Fleming Results

Several authors have pointed out after observing the events in South/East Asia in 1997/8 that the presence of currency mismatches and credit market imperfections could be key elements to understand the financial crisis that affected these economies. A far from exhaustive list of researchers that first supported this argument includes Krugman (1999) and Aghion et al (2000). Implicitly in their work lies the idea that expenditure/switching effects as emphasized in the traditional Mundell/ Fleming textbook model can be counter/balanced by a debt burden of those agents indebted in foreign currency.

Whenever the latter effect is strong enough, the reduction in the value of the domestic vis a vis the foreign currency can generate a contraction in output (i.e., the balance/ sheet effect). This is, as Calvo and Reinhart (1999) argued, a reinterpretation of the debt/deflation argument popularized by Fisher (1933) but now in the context of small/open economie. Krugman and Aghion et al, however, only develop highly/stylized partial/equilibrium models in which the long/run dynamics are not considered.

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