What conditions should be met for the write-off of bad debt reserves?

Commercial banks must comply with legal provisions when withdrawing bad debt reserves and writing off Bad debts. Only under legal procedures and within the scope can commercial banks write off their bad debt reserves. What conditions should be met for the write-off of bad debt reserves? Next, the editor of Legal Savior Network will introduce it to you.

The write-off of bad debt reserves should meet the following conditions:

1. The borrower and guarantor are declared bankrupt in accordance with the law , a loan that still cannot be repaid after scheduled repayments.

2. The borrower dies, or is declared missing or dead in accordance with the provisions of the Civil Code, and the loan cannot be repaid after repaying it with his property or inheritance. .

3. The borrower suffers a major natural disaster or accident, suffers huge losses and cannot obtain insurance compensation, and is truly unable to repay part or all of the loan, or it can be repaid with insurance compensation. A loan that was later failed to be repaid.

4. Overdue loans approved by the State Council.

The write-off of bad debts should implement a hierarchical approval system, strictly perform the approval procedures, and write off bad debts in a timely manner. Corresponding RMB bad debt reserves should be withdrawn for foreign exchange loans, and cash exchange is not allowed. If losses on bad debts occur on foreign exchange loans, after review and approval, you can apply to purchase foreign exchange to offset the losses on foreign exchange loans.

The above are the conditions that the write-off of bad debt reserves should meet as summarized by the editor of Legal Savior Network. I hope it can be helpful to everyone.