All credit policies should adequately detail the write-off procedures and periodical review of written off loans in order to minimize potential abuse. The ultimate authority for approval of write-offs rests with the board of directors or any designated body duly formed by the board of directors (National Banks may refer to Circular No. 23/2000 dated 22/07/2000 – Required Administrative Structure in Banks).A memoranda accounts should be maintained for written off loans. All recoveries made from the accounts earlier written off should be credited to the income account. A summarized record of such recoveries should be maintained for Central Bank’s examiner’s review.