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A bad bank plan can be implemented in a centralized or decentralized manner. Under a decentralized plan, each troubled bank is split into its own good and bad bank. Under a centralized plan, all distressed assets in the banking sector are deposited in a single bad bank. If one bad bank were established for each of the three main pillars of the German banking industry – i.e. for the credit unions, savings banks and private banks – this would also qualify as a centralized bad bank plan. Mixed solutions that combine private and public sector funding as well as centralized. | 59 July 2009 WSBI ESBG BEYOND MICROCREDIT THE ROLE OF SAVINGS BANKS IN MICROFINANCE Experiences from Latin America Africa and Asia BEYOND MICROCREDIT THE ROLE OF SAVINGS BANKS IN MICROFINANCE Experiences from Latin America Africa and .
