What Are Zombie Banks?

commercial lender

Banks and Banking

Before engaging in commercial lender negotiating with any bank, it is important to determine if they are a “good bank” or a “bad bank”. A banking description that is being seen more frequently is “zombie bank”. This generally refers to a banking institution that has a negative net worth and that would not be operational if not for government guarantees or other financial support. This concept is more relevant than most bankers care to admit, so it is important for commercial borrowers to do their own due diligence when they are looking for commercial real estate loans and working capital financing.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s