What was the first bad bank in the world?

The concept of the modern "bad bank"—an asset management entity set up to isolate and manage non-performing loans or illiquid assets from commercial balance sheets—was historically pioneered on a national scale with the creation of the Mellon Bank-sponsored Grant Street National Bank or Sweden's Securum during the early 1990s banking crisis. However, early structural precedents trace back even further to historical institutional debt-relief programs and asset-recovery vehicles designed to absorb toxic bad debts during localized financial panics.