Dictionary

bad bank en · NOUN

Etymology

Possibly derived from a usage by Walter Bagehot in Lombard Street: "The cardinal maxim is, that any aid to a present bad bank is the surest mode of preventing the establishment of a future good bank."

Meanings

1. A bank created to specialize in the ownership of defaulted loans and their collection.
   • And Grant Street National Bank, as the bad bank is called, ... The bad bank and its 75 workout specialists proved adept at unloading sorry loans 1992, Business Week:
   • In the 1980s, another method of problem resolution emerged, known as a good-bank, bad-bank split model. 1999, Benton E. Gup, International banking crises, page 249:

Forms

Relateds

toxic assets

Synonyms

collection bank

Translations (6)

sv dålig bank (bank specializing in bad credits) · sv bad bank (bank specializing in bad credits) · sv skräpbank (bank specializing in bad credits) · fi roskapankki (bank specializing in bad credits) · nl bad bank (bank specializing in bad credits) · de Bad Bank (bank specializing in bad credits)