It is not illegal to write off loans that do not meet the conditions for write-off. Write-off is one of the main disposal methods of non-performing loans. Banks generally write off non-performing loans that cannot be recovered after due diligence.

Loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally agree on interest and repayment date. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds.