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 bad bank possibility is a crisis-type method of isolating financial assets that have problems.

From Reuters • Apr. 26, 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

Output   recovered moderately in 2002 in the face of continued global   slowdown, fragile consumer confidence, and bad bank loans; and the   essentially vibrant economy pushed ahead in 2003-04.

From The 2005 CIA World Factbook by United States. Central Intelligence Agency