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." This legislation will make the processing system less vulnerable to disruptions in air and ground transportation services.
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.
Under the plan, the government would broaden the scope of the government-run Resolution and Collection Bank Ltd so it can extend loans to companies that have borrowed from failed banks.
Conformed documents must be presented by the beneficiary to the collection bank, normally the exporter's bank.
If periodic or infrequent receipts in given currencies are expected, you should be able to use your international collection bank's foreign currency account.
What's more, he declared that the bank has increased its cooperation with VISA to enable it to fulfil more tasks, such as issuance bank, collection bank, debit cards, prepaid cards, credit cards, deployment of ATM networks both inside and outside the bank's branches, spreading POS machines, and training 300 bank employees.
The local depository for a SUNY Campus acts primarily as the collection bank for tuition and other fees levied by the University.
The Nihon Keizai Shimbun, a major economic newspaper, reported in its Tuesday morning edition that Taku Yamasaki, chairman of the LDP's Policy Research Council, proposed using fiscal investment and loan funds to empower Resolution and Collection Bank (RCB) to provide financial backing to holders of "second-category loans.
Given BdB cannot be replaced as a collection bank, the transaction would ultimately be capped at the credit quality of BdB.
and Resolution and Collection Bank, is charged with buying bad loans from collapsed institutions and relatively healthy financial institutions.
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.
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