bad bank

noun

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

Example Sentences

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

Read more on Barron's

The cryptocurrency market is experiencing a “massive sell-off” driven by broader market jitters over bad bank loans and tariff threats.

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Moody’s said in its statement the upgrade from Ba1 to Baa2 with a concurrent change in outlook from positive to stable is due to previous and continuing economic, fiscal and banking reforms, as well as a significant drop in bad bank loans.

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But First Republic struggled to find support from larger banks or private equity firms on its proposed move to create a so called "bad bank" or sell assets such as securities and mortgage book.

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But many of the options proposed - including selling assets or the creation of a "bad bank" that would isolate its underwater assets - have so far failed to yield a deal, the sources added.

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