Definitions

from Wiktionary, Creative Commons Attribution/Share-Alike License.

  • noun banking, economics A bank created to specialize in the ownership of defaulted loans and their collection.

Etymologies

from Wiktionary, Creative Commons Attribution/Share-Alike License

Possibly derived from a usage by Walter Bagehot in Lombard Street: "The cardinal maxim is, that any aid to a present bad bank is the surest mode of preventing the establishment of a future good bank."

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