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A zombie bank is a financial institution that is essentially insolvent but is still able to operate due to government support.
Because the government feels it will need avenues to allocate credit in the future, it has been keeping the zombie banks afloat through this crisis in the hopes that we will soon see a recovery.
Zombie banks arise in the wake of financial crises when the value of assets they hold has fallen to below that of their liabilities. When a bank’s customers fear that something similar may happen to that bank, they may start withdrawing cash in a bank run, thus further decreasing the bank’s assets and worsening the problem.
Zombie banka je finanční instituce, která je v zásadě insolventní, ale je stále schopná provozu díky státní podpoře.
Jelikož si stát myslí, že bude potřebovat cesty, kterými bude možné v budoucnu přidělovat úvěry, udržoval zombie banky v chodu po dobu krize s nadějí, že brzy dojde k zotavení.
Zombie banky vznikají v návaznosti na finanční krize, kdy hodnota aktiv, které drží, spadla pod hodnotu jejich závazků. Když se klienti banky obávají, že k něčemu podobnému může u jejich banky dojít, mohou začít vybírat hotovost v rámci runu na banku, a tím dále snížit aktiva banky, čímž problém ještě zhorší.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
