What is a Bad Bank

Bad Bank is not a wicked or a corrupt bank. Neither is it a failed bank. Let us find more about the concept and working of a Bad Bank.




What is a Bad Bank

A bad bank is termed so simply because it houses bad loans, or in financial parlance - non-performing assets (NPAs).

A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. The