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bad bank

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noun economics British English pronunciation: bad bank 
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singularbad bank
pluralbad banks
  1. a bank created by the state to buy private banks' bad debts (=money owed to them that will never be paid) so that the private banks can continue to lend money

    The Swedish government chose to establish two bad banks, Retriva and Securum.

    The "bad bank" scheme would involve taxpayers having to take on billions of pounds in risky assets.

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