### Question
How is the "financially troubled bank" defined?


### Answer
The term **financially troubled bank** is defined in *26 U.S.C. § 585* as follows -

> 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 APPLICATION TO BANKING INSTITUTIONS**

