The main finding is that bad bank segregations. Verkkothe crisis in its current state is exerting pressure on the banking sector from four directions: Funding pressure, access to equity capital markets, regulation, and. Verkkolarge volumes of bad loans can cause banks problems with their capital adequacy and, at worst, can lead to default. Verkkoour results suggest that small banks located in smaller counties escalate their commitment to bad loans when compared with those located in. Verkkowe analyse the impact of bad bank resolutions on surviving banks.