Definition of “bad bank” - English Dictionary

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“bad bank” in Business English

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bad banknoun [ C ]

uk us BANKING, FINANCE, ECONOMICS

a bank that takes bad assets (= assets that have lost their value) and bad loans (= 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 bad bank that will take on the toxic assets that have damaged the global banking system.
The government has launched a bad bank to take over many of the 3.9 million credit card loans that are in arrears.

(Definition of “bad bank” from the Cambridge Business English Dictionary © Cambridge University Press)