economic_loss

This is the definition of loss used in estimating Loss Given Default.  When measuring economic loss, as opposed to accounting loss, all relevant factors should be taken into account, including material discount effects and material direct and indirect costs associated with collecting on the exposure.  Reported on Post-CRM basis

Inclusions are direct and indirect costs, and if any, discount effects associated with collecting on the exposure.

Institutions are to apply the definition and calculation of Economic Loss consistently according to their internal approach. Internal calculation is specific to each FI and should include total economic losses for the reporting quarter.