Forcing banks to write off loans to help customers tide over their financial difficulties will set a wrong precedent and will adversely affect the health of bank balance sheets, bankers and analysts told Gulf News on Sunday.
"Banks can at best restructure loans, waive interest payments and facilitate early settlements of loans without charging any penalty on customers facing financial difficulties.
"But if we force banks to write off loans, we will soon have banks facing difficulties," the retail banking head of a Dubai-based bank said.
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