"...clear the books of bad assets"


Lithuanian - Lithuania
Hello everyone,

could you please explain this bold bit to me? Or simply paraphrase it in simpler words?

"He said he and his team had discussed the stability of the financial system, the housing market and plans to help banks clear their books of bad assets."

Thank you in advance! :)
  • cropje_jnr

    Senior Member
    English - Australia
    "Books" refer to the banks' accounts. "Clear" means removing or getting rid of. "Bad assets" are generally assets that incur an ongoing loss and have no prospect of yielding a profit in the foreseeable future (although I'm certainly not a financier).

    If I were to reword it, perhaps something like "... to help the banks get rid of the damaging assets currently on their accounts" (and so hurting the bank's ability to make a profit and operate normally, particularly in regards to lending).
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