zombie bank

noun

, Informal.

1. a bank that has liabilities exceeding its assets but continues to operate through government support:

   These zombie banks are unable or unwilling to lend out money.

Word History and Origins

Origin of zombie bank¹

1985–90; zombie, in the extended sense 'a body given the semblance of life'

Example Sentences

"They’re going to prop this thing up and walk it around like its alive, but it will basically be a zombie bank that’s state controlled."

From Reuters

To me, Deutsche Bank looks very much like the archetypal “too big to fail” zombie bank – draining money from central banks, sovereigns and investors while giving little in the way of returns.

From Forbes

"Who would want to buy a zombie bank?"

From Wall Street Journal

The Bank of Cyprus is a “zombie bank,” said Theodore Panayotou, director of the Cyprus International Institute of Management.

From New York Times

The zombie bank — as it is called here — is so ingrained in the black humor of Ireland that a song and dance production about its collapse is set to open in Dublin in November.

From New York Times