### Question
How does Banking Institutions define financially troubled bank?


### Answer
Under *26 U.S.C. § 585*, **financially troubled bank** is defined as:

> any bank if, for the taxable year, the nonperforming loan percentage of such bank exceeds 75 percent

#### Citation:
  - *26 U.S.C. § 585*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter H-Banking Institutions > PART I-RULES OF GENERAL APPLICA**

