Not all non-performing loans can be written off, and certain conditions must be met. It must be a non-performing loan that has not been recovered or reduced through various efforts and has become a bad debt.

Bad debts are written off with profits, so it will reduce the bank's income in that year. The general banking regulatory bureau requires banks to have indicators of non-performing loan ratio, so banks must comprehensively consider profits and non-performing indicators to decide whether to write off.