bad bank

EnglishEdit

EtymologyEdit

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."

NounEdit

bad bank (plural bad banks)

  1. (banking, economics) A bank created to specialize in the ownership of defaulted loans and their collection.
    • 1992, Business Week‎:
      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
    • 1999, Benton E. Gup, International banking crises, page 249:
      In the 1980s, another method of problem resolution emerged, known as a good-bank, bad-bank split model.

SynonymsEdit

  • collection bank

TranslationsEdit

See alsoEdit

Last modified on 22 September 2013, at 05:00