Bridge Bank
/ˈbrɪdʒ bæŋk/
Definitions
- (n.) A financial institution established by a regulatory authority to assume the assets and liabilities of a failed bank temporarily.
The FDIC created a bridge bank to maintain stability after the local bank's collapse.
Forms
- bridge bank
- bridge banks
Related terms
See also
Commentary
Used primarily in banking law and regulatory contexts, bridge banks ensure continuity of banking services during resolution proceedings.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.