bad bank
noun[C]
BANKING,FINANCE,ECONOMICSukusabankthattakesbadassets(=assetsthat havelosttheirvalue)andbadloans(=debtsthat areunlikelyto bepaidback)from otherbanksororganizationsanddealswith them inordertohelpwitheconomicproblems:
The Treasury iscreatingabadbankthat will take on thetoxicassetsthat havedamagedtheglobalbankingsystem.
Thegovernmenthaslaunchedabadbankto take over many of the 3.9 millioncreditcardloansthat are inarrears.