zombie bank

noun

: a bank that continues to operate despite having liabilities in excess of its assets : an insolvent bank kept in operation especially by government intervention

“Zombie banks” was the term for Japanese financial institutions propped up by government in the 1990s despite their basic insolvency after a real-estate bubble.

—Rich Lowry, The Oregonian (Portland, Oregon), 14 Feb. 2009

We have zombie banks that are weighed down because their liabilities exceed their assets. Without a precise mechanism for addressing toxic assets, it will be difficult to increase lending.

—John Kerry, quoted in New York Times, 11 Feb. 2009

Word History

First Known Use

1988, in the meaning defined above

Love words?

You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

Start your free trial today and get unlimited access to America's largest dictionary, with:

• More than 250,000 words that aren't in our free dictionary
• Expanded definitions, etymologies, and usage notes
• Advanced search features
• Ad free!