but if a loan is collateralized, the bank can consider the loan an asset, since the collateral will make the loan whole if the borrower defaults. But for credi

but if a loan is collateralized, the bank can consider the loan an asset, since the collateral will make the loan whole if the borrower defaults. But for credit cards, which usually is not collateralized, you cannot do that. Therefore, it makes sense to recognize the cost of loan-loss provisions as a cost.