ZOMBIE: Banks?

By Staff Reporters

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  • A zombie bank is an insolvent financial institution that is able to continue operating thanks to explicit or implicit support from the government.
  • Zombie banks are kept afloat to prevent panic from spreading to healthier banks.
  • The term zombie bank was first coined by Edward Kane of Boston College in 1987, in reference to the savings and loan crisis (S&L).

CITE: https://www.r2library.com/Resource

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