bad bank Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: bad bank
bad bank

specially chartered bank, acting as a self-liquidating trust, chartered by a bank holding company to hold nonperforming assets owned by a federally insured bank. Transfer of bad loans improves the asset quality of the seller. Also known as a collection bank.

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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