zombie bank

American  

noun

Informal.

1. a bank that has liabilities exceeding its assets but continues to operate through government support.

   These zombie banks are unable or unwilling to lend out money.

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Etymology

Origin of zombie bank

1985–90; zombie, in the extended sense 'a body given the semblance of life'

Example Sentences

Washington has not been saddled with zombie banks that are alive but incapable of lending, and it has given growth a higher priority than deficit reduction.

From The Guardian

The main goal is to expose so-called zombie banks, lenders that have covered up deep problems by issuing new credit to troubled borrowers rather than allowing them to default.

From New York Times

To me, Deutsche Bank looks very much like the archetypal “too big to fail” zombie bank – draining money from central banks, sovereigns and investors while giving little in the way of returns.

From Forbes

"Who would want to buy a zombie bank?"

From The Wall Street Journal

The zombie bank — as it is called here — is so ingrained in the black humor of Ireland that a song and dance production about its collapse is set to open in Dublin in November.

From New York Times