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

Citi split itself into a core “good bank” and a “bad bank” that housed its toxic assets and unwanted lines of business.

From The Wall Street Journal

After the deal with Morgan Stanley was completed, Michael Corbat, a rising executive at the time, asked Mason if he would help him run the “bad bank,” called Citi Holdings.

From The Wall Street Journal

Citi wasn’t out of the woods even after the “bad bank” was shuttered.

From The Wall Street Journal

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