loan-loss
UK[ˈləʊn lɒs]US[ˈloʊn lɔːs]
n
A loss incurred by a bank or other financial institution when a borrower fails to repay a loan as agreed.
Morpheme Breakdown
loan
loss
loan
a sum of money lent
loss
the fact or process of losing something
Etymology
The compound noun 'loan-loss' is a modern financial term constructed from two ancient Germanic roots. 'Loan' originates from the Old Norse 'lán', which carried the sense of something granted for temporary use, a concept deeply embedded in early Germanic economic relations. 'Loss' derives from the Old English 'los', meaning destruction or ruin, reflecting a fundamental and negative outcome. In the specialized context of modern finance, these two elemental concepts are combined to precisely denote the specific financial detriment that occurs when the temporary grant of a loan (the 'loan') results in a failure of repayment, thus becoming a financial destruction (the 'loss'). This term exemplifies how English creates precise technical vocabulary by transparently compounding words of native stock.
Analysis
Structure: loan (a sum of money lent) + loss (the fact or process of losing something)
loan: From Middle English 'lone', 'lan', from Old Norse 'lán' (loan), from Proto-Germanic laihwniz. Functions as the object or subject of the loss.
loss: From Middle English 'los', from Old English 'los' (destruction, loss), from Proto-Germanic lusą. Functions as the core event or state described.
Examples
The bank set aside substantial reserves to cover potential loan-losses.
An increase in unemployment often leads to a higher loan-loss ratio for lenders.
The auditor's report highlighted concerns about the company's growing loan-loss provisions.