What is Zombie bank?
A '''zombie bank''' is a special case of a [[zombie company]]. It is a [[financial institution]] that has a net worth of less than zero. Usually, such companies file for [[bankruptcy]]. Like a zombie company, the zombie bank is still able to pay the short-term liabilities (such as the [[interest]] on its [[Loan|loans]]). It doesn't have enough money to repay the loans, though. If the [[Interest rate|interest rates]] are low, this will help zombie banks. Zombie banks, like zombie companies can be saved from bankruptcy, but usually they need a large (and costly) reorganization. The term zombie bank (and zombie company) was first used to refer to a period of Japanese economy, in the 1990s: This period is known as [[Lost Decades]], today. [[Category:Banks]]