The business of banking is one in which loans are made under the expectation that they will be repaid in a reasonable period of time and that they will be profitable. We expect the loan to be repaid and we expect the administrative cost to be such that the bank can make a profit. There is a binding requirement to repay. There are instances where banks make loans that are written off because they cannot be repaid, and ultimately they are not. Banks do try if there's collateral, if there's a guarantee. They will apply that to try to get the funds back. Banks always make loans on the expectation that they will be repaid.
On November 1st, 2012. See this statement in context.