bad bank

English dictionary entry

Meanings

noun
  1. A bank created to specialize in the ownership of defaulted loans and their collection.

Word forms

bad bank bad banks

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."

Synonyms

collection bank

Related words

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