toxic bank: meaning, definition, pronunciation and examples
mediumformal, technical
Quick answer
What does “toxic bank” mean?
A financial institution that holds a large amount of toxic assets, such as non-performing loans or risky investments, often posing a risk to the financial system.
Audio
Pronunciation
Definition
Meaning and Definition
A financial institution that holds a large amount of toxic assets, such as non-performing loans or risky investments, often posing a risk to the financial system.
Refers to banks that are in financial distress due to bad debts, potentially requiring government intervention or bailout, and can imply systemic harm to the economy.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning; minor variations in pronunciation and spelling (e.g., 'bank' may be pronounced with a slightly different vowel quality).
Connotations
Identical in both varieties, conveying negative financial health and risk.
Frequency
Equally common in financial discourse in both the UK and US, especially post-2008 crisis.
Grammar
How to Use “toxic bank” in a Sentence
The toxic bank collapsed.Governments often intervene in toxic banks.toxic bank + requires + actionVocabulary
Collocations
Examples
Examples of “toxic bank” in a Sentence
adjective
British English
- The bank's toxic assets led to its downfall.
American English
- That bank is considered toxic due to its risky loans.
Usage
Meaning in Context
Business
Used in financial reports, news, and discussions about banking crises and economic stability.
Academic
Featured in economics, finance, and policy papers analyzing financial systems and risks.
Everyday
Rarely used in casual conversation; mostly encountered in financial news or educated discourse.
Technical
Specific to banking, finance, and regulatory contexts, describing institutions with impaired assets.
Vocabulary
Synonyms of “toxic bank”
Strong
Neutral
Weak
Vocabulary
Antonyms of “toxic bank”
Watch out
Common Mistakes When Using “toxic bank”
- Confusing 'toxic bank' with environmental terms like 'toxic waste', or using it to describe a bank that is literally poisonous.
- Overusing in non-financial contexts where 'bad bank' or 'failed bank' might be more appropriate.
FAQ
Frequently Asked Questions
A toxic bank is a financial institution that holds a significant amount of toxic assets, such as bad loans or risky investments, which can threaten its stability and the broader economy.
No, it is primarily used in financial, business, and academic contexts, especially when discussing banking crises or economic policies.
No, 'toxic bank' is a compound noun; however, 'toxic' can be used as an adjective to describe banks, as in 'toxic assets' or 'toxic loans'.
While both imply financial trouble, 'toxic bank' specifically highlights the presence of toxic assets, whereas 'failing bank' is a broader term for any bank in distress, regardless of asset quality.
A financial institution that holds a large amount of toxic assets, such as non-performing loans or risky investments, often posing a risk to the financial system.
Toxic bank is usually formal, technical in register.
Toxic bank: in British English it is pronounced /ˈtɒksɪk bæŋk/, and in American English it is pronounced /ˈtɑːksɪk bæŋk/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of a bank that is 'toxic' like poison—it harms the economy by holding bad debts.
Conceptual Metaphor
Finance as a body; toxic assets as a disease that weakens or kills the financial system.
Practice
Quiz
What does 'toxic bank' primarily refer to?