bad banknoun [ C ]
ukusBANKING, FINANCE, ECONOMICSa 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.