Write-off of bank loans When the bank determines that non-performing loans cannot be recovered, it will write off non-performing loans. Non-performing loans refer to loans in which the borrower fails to repay the loan principal and interest on time as agreed in the loan contract, or there are signs that the borrower cannot repay the bank loan principal and interest on time as agreed in the loan contract.

Loan write-off is the abbreviation of "bad debt write-off". When part of the loan is not paid off, the audit department of the bank determines that there is no way to recover the loan, and the bank will write off the non-performing loan according to the regulations.