Zombie bank

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As a zombie bank one is Bank referred to a simultaneously zombie company is: it is actually insolvent , but still exists and operates banking . This polemical term , which comes from English , was also used in the German-speaking area in the course of the financial crisis from 2007 onwards. The term was first used in English by Edward Kane in 1987 to describe the dangers of tolerating numerous insolvent savings and credit banks .

term

The term zombie bank was first used in 1987 by Edward J. Kane , then a professor of banking and monetary policy at Ohio State University . He pointed out the dangers that arise if banks and insurance companies that are actually insolvent are allowed to continue operating on the market . Kane later warned of the impending Japanese banking crisis . The professor now working at Boston College also used the term in his work on the peso crisis of 1994 and the Asian crisis in 1997 and 1998 . The Harvard -Professor Niall Ferguson used the term in the World Economic Forum in Davos in 2009 and said it already give such institutions, in principle, it is however "too polite" to say so.

A zombie bank is thus a financial institution that through loan default or speculative losses actually already a significant negative net asset value ( net asset value , but), in its balance sheet still a positive book value has since bad loans and receivables are still as valuable assets that actually should have already been written off . Instead, the management of a zombie bank tries to postpone these write-offs and to conceal existing problems, otherwise the bank would run immediately . In this case, the bank would not only be over-indebted , but also il liquid - i.e. insolvent . The management hopes at this stage typically to a saving investor or government support, already the / of negligence or fraud can involve criminal but bankruptcy / bankruptcy offense or Insolvenzverschleppung guilty.

For the origin of the name cf. Zombie .

Demarcation

The zombie bank is not to be confused with the bad bank , which is established by the state or banking associations with the aim of taking on bad loans and claims from banks in trouble. At the Bad Bank, it is admitted from the outset that the loans and receivables have no or only a very low value.

Individual evidence

  1. ↑ cf. Financial Times Deutschland, Lexicon of Office Language ( Memento from September 1, 2009 in the Internet Archive )
  2. ↑ Focus: “Bad Bank” - Do we need the zombie bank? January 23, 2009
  3. ↑ The good capitalism: ... and what would have to change after the crisis, Chapter 3.2: A bad bank - but correct in the Google book search
  4. ^ Kane, Edward J .: The S&L Insurance Mess: How Did It Happen? Urban Institute Press, Washington DC 1989, ISBN 978-0-87766-468-0 .
  5. ^ A b Edward J. Kane: The S&L Insurance Mess: How Did It Happen? . Urban Institute Press , Washington, DC 1989, ISBN 978-0877664680 .
  6. ↑ a b What Lessons Should Japan Learn from the US Deposit-Insurance Mess? . In: Elsevier (Ed.): Journal of the Japanese and International Economics . 7, No. 4, December 1993, pp. 329-355. ISSN  0889-1583 . doi : 10.1006 / jjie.1993.1021 .
  7. ^ Edward J. Kane: What lessons might crisis countries in Asia and Latin America have learned from the savings and loan mess. In: James R. Barth, Susanne Trimbath, Glenn Yago: The savings and loan crisis: lessons from a regulatory failure. Springer, 2004, ISBN 9781402078712
  8. ↑ Der Spiegel: Economists tear apart Obama's rescue plan. January 30, 2009