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

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 • Apr. 28, 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

With so much "bad bank paper" in circulation, Speridionides is not likely to set a high price on his own scrip.'

From Lord Kilgobbin by Lever, Charles James