meaning of bridge bank

bridge bank meaning in Law Dictionary

in the usa law of banking legislation, a bridge bank is a short-term bank organized by national lender regulators to administer the build up and debts of a failed lender. Underneath the Competitive Equality Banking Act (CEBA) of 1987, the Federal Deposit Insurance Corporation (FDIC) is authorized to work a failed bank for a time period of around 36 months, until a buyer can be obtained because of its operations.

bridge bank meaning in Business Dictionary

A bank that the FDIC designates as insolvent and subsequently gets control control. The FDIC oversees loans and deposits for three-years or until they find a buyer or liquidate the possessions. A bridge lender must certanly be a national bank or a federal cost savings organization.