An allowance 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 general allowance on an aggregated basis and as part of identifiable groups, each with its own credit characteristics.

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