An allowance (provision) that is set up for expected credit losses (ECLs) on total unimpaired loan/ receivables and other exposures when such losses cannot yet be estimated for each. Typically, individually insignificant loans or exposures are accounted for by means of a collective allowance on an aggregated basis and as part of identifiable groups, each with its own credit characteristics.

A collective provision is also known as a general provision (as opposed to an individual provision/ specific provision).