An allowance that is set up for expected credit losses (ECLs) on specific unimpaired loan/ receivables and other exposures for each of which such losses can be estimated. Typically, individually significant loans or exposures are accounted for by means of an individual allowance on an standalone basis as each has its own credit characteristics.
A specific allowance (or provision) is also known as an individual allowance (as opposed to an collective allowance/ general allowance).
