Moreover, existing standards do not contain specific rules regarding the modalities of write-offs. Some supervisors have issued NPL write-off guidelines with a view to promoting timelier NPL disposal and, more generally, the development of a market for distressed debt. They are – with few exceptions – principles-based, in accordance with the recovery expectations.
The guidance is that when loans are deemed uncollectable or unrecoverable, they should be written off in a timely manner. The guidance also addresses qualitative aspects with regard to approaches to assessing 4/6  BIS central bankers' speeches  provisions on an individual and collective basis. Furthermore, it puts emphasis on the quality of internal documentation, reporting and disclosures for the processes surrounding this.