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bad banknoun [C]

a ​bank that ​takes badassets (= ​assets that have ​lost their ​value) and badloans (= ​debts that are unlikely to be ​paid back) from other ​banks or ​organizations and ​deals with them in ​order to ​help with ​economic problems: The Treasury is ​creating a ​badbank that will take on the ​toxicassets that have ​damaged the ​globalbankingsystem. The ​government has ​launched a ​badbank to take over many of the 3.9 million ​creditcardloans that are in ​arrears.
(Definition of bad bank from the Cambridge Business English Dictionary © Cambridge University Press)
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