Does it mean "bad loans"?
The plan has several advantages. By forcing banks to recognize losses, it could trigger a much-needed restructuring of Europe’s overcrowded banking sector: Unhealthy banks would have to either raise more capital or shut down. By averting a fire sale into illiquid markets, the plan would limit system-wide losses and make the whole reckoning less painful. The bad bank could even turn a profit for the European governments that provided its capital.