Primary navigation:

QFINANCE Quick Links
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of bad bank

Definition of

bad bank


government bank accepting other banks' risky loans a government-owned bank created to buy and hold risky assets from other banks, in order to re-activate lending and stimulate economic activity

Recommended Further Reading (Term count)
  • The Insurance Sector: Plenty of Silver Lining to Be Found
    by Andrew Milligan
    If one looks at the devastation wrought on the global finance community, there is no doubt that the insurance sector has come out of this in very much better shape than the banks. There have been casualties—AIG in the United States, for example. However, AIG was a special case, being much more of a financial conglomerate than a “pure” insurance company.The reasons why the insurance sector has been less affected by the financial services...
  • The Great Crash, 1929
    John Kenneth Galbraith (1955)
    Entertaining account of the market mania and resulting historic crash of 1929. Tells a relevant and timely story of over-investment and market frenzy, and why financial bubbles since then have always been compared to the Great Crash. Traces the market fluctuations of the time, showing how the crash evolved and helped ignite a full economic depression.
  • Staying in the Dark about Derivatives Will Bring Economic Collapse
    by Hernando de Soto
    Hernando de Soto is president of the Institute for Liberty and Democracy (ILD)—headquartered in Lima, Peru—considered by The Economist as one of the two most important think tanks in the world. Currently, he is focused on designing and implementing capital formation programs to empower the poor in Africa, Asia, Latin America, the Middle East, and former Soviet nations. He also co-chaired the Commission on Legal Empowerment of the Poor, and...

Definitions of ’bad bank’ and meaning of ’bad bank’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’bad bank’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top