Zombie Bank - Definition

A zombie bank is a financial institution that has an economic Net Worth less than zero but continues to operate because its ability to repay its debts is shored up by implicit or explicit government credit Support. The term was first used by Edward Kane in 1987 to explain the dangers of tolerating a large number of insolvent savings and loan associations and applied to the emerging Japanese crisis in 1993.

A zombie bank drains bailout Capital from the government but doesn't respond with any meaningful lending that helps the economy recover. The prevalence of zombie banks made the Long Japanese Recession of the 1990s painful.



Terms near "Zombie Bank"

Zombie Debt
Zone Of Possible Agreement
Zone Of Support
Zoning Ordinance
Zvi Griliches
ZWD
ZZZZ Best
Ready to Trade!
First you'll need an online broker. See how much you can save by visiting Forexbite Broker Center.
Advertisement

Zombie Bank - Related articles & news

Featured
Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation