Bad bank

(redirected from Collection Bank)
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Bad bank

A government owned entity that takes over and liquidates toxic assets from failed or declining financial institutions to leave them with a clean balance sheet. The strategy was last used during the Savings and Loan crisis of 1980s where this entity was called the Resolution Trust Corporation.

Bad Bank

A bank to which a bank holding company transfers non-performing assets from the banks it owns. This reduces the risk to which the transferring banks are exposed, which in turn increases their credit quality. A bad bank is also called a collection bank.
References in periodicals archive ?
28 collection banks have the option of processing checks electronically using new instruments called "substitute checks.
Swansea's cabinet member for the environment, Lilian Hopkin, said, "While most of our local supermarkets support council recycling initiatives by providing an area for collection banks, this is the first time that a Swansea supermarket has actually sponsored the purchase of the containers themselves.
According to section 16 of the company's articles of association, only those shareholders are entitled to participate in the general meeting and exercise voting rights who deposit their shares during normal hours of business by Wednesday, March 08, 2000 at the latest with the company, with a German notary or with a securities collection bank authorised to receive the shares, and leave them there until the end of the general meeting.
BOT-Mitsubishi will technically be repurchasing 100 billion yen worth of so-called perpetual subordinated bonds it issued to the Resolution and Collection Bank, now called Resolution and Collection Corp.
and Resolution and Collection Bank, which had been engaged in similar work.
The 230 billion yen was remitted into the accounts of the four banks through the Resolution and Collection Bank (RCC), the state-run body that buys up bad loans, the DIC said.
Nakabo is the president-designate of a planned new government-backed debt-collection body to be formed in April through the merger of the corporation and the Resolution and Collection Bank.
The two banks requested the deposit insurance agency to provide 770 billion yen in grants to cover losses of the collapsed Midori Bank and 300 billion yen for purchases of bad loans at Midori Bank by the Resolution and Collection Bank, a quasi-governmental loan collection body, officials at the two banks said.
The new debt-collection body is to be founded through the law-mandated merger of two existing bodies -- HLAC and Resolution and Collection Bank, another government-backed entity that has bought the bad loans of failed banks.
to be created by merging the Resolution and Collection Bank and Housing Loan Administration Corp.
and the Resolution and Collection Bank signed a contract Friday for the merger of their two organizations next April 1 to become a new government-backed debt collection body.
Resolution and Collection Bank (RCB), a quasi-governmental debt-collection body, will have to report next March a total of 120 billion yen in losses on the nonperforming assets it took over from failed credit unions and banks, Finance Ministry officials said Thursday.
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