bad bank

British  

noun

1. a financial institution set up to hold and manage underperforming assets owned by other banks

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Example Sentences

Are you worried about the health of credit markets after the recent bankruptcies and bad bank loans?

From Barron's • Oct. 23, 2025

The planned new houses are in addition to a previously announced plan to convert 50,000 foreclosed homes under management by Spain's bad bank Sareb.

From Reuters • Apr. 19, 2023

Based on what’s known so far, bad bank management, unheeded warnings and the unintended consequences of rising interest rates all contributed to SVB’s implosion.

From Washington Post • Mar. 28, 2023

Nonetheless, the still very high debt levels and bad bank loans drag the country’s rating down, Fitch says.

From Seattle Times • Jan. 14, 2022

The regent in Law's time had given a monopoly of note issue to a bad bank, and had paid off the debts of the nation in worthless paper.

From Lombard Street : a description of the money market by Bagehot, Walter