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

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

From Barron's

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.

From Seattle Times

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.

From Reuters

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.

From Reuters