Zombie Bank

April 22, 2023

Zombie firms/companies survive on borrowing as they do not have enough profits to cover debt-servicing costs.
Zombie Bank is a bank that is practically insolvent but continues to exist through hiding bad loans on their balance sheet.
- These are kept afloat to prevent panic from spreading to healthier banks.
Zombie banks resort to forbearance lendinge. allows a borrower to temporarily stop or suspend payments of the loan.