American International Journal of Social Science

Bad Banks as Support Instrument for Crisis Deactivation
Prof. Piotr Masiukiewicz

Abstract
After last financial crisis in more countries special banks (or funds of bad debts) of bad debts where created. There can make quick and effective restructuration (recovery) of bankrupt financial institutions and enterprises. This paper presents types of activity in European Union and answers the following questions: how should the bank be organized, who can give the founder’s capital for the bad bank, how long the bad bank (fund) should be active. The case studies of Greece and Poland showed differential models and effects bad bank (fund) as instruments of crisis deactivation.

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