The term "bad bank" is used to describe a financial institution that manages non-performing loans and toxic assets. This term, however, has a negative connotation and may not be preferred by stakeholders. Synonyms for bad bank include asset management company, distressed assets management firm, special purpose vehicle, or resolution entity. These synonyms are more neutral and descriptive, focusing on the purpose of the institution rather than the negative association of the term "bad." No matter the terminology used, such institutions play a critical role in the financial system by allowing banks to offload risky assets and focus on their core businesses.