The economic crisis beginning in 2007 with starting point in the U.S. real estate sector had a major impact on European countries and companies, also some banks were affected. Until the outbreak of the economic crisis banks had dealt with a small amount of equity and high-risk assets. A tool to cope with the consequences of the economic crisis for banks is the foundation of liquidity facilities, the Bad Banks. The task of a Bad Bank is the liquidity of toxic assets and loans with the goal to maximize profits or minimize losses. The master thesis deals with the background of Bad Banks, it looks towards the functioning, structure and risks of banks and describes the development of the economic crisis from 2000 to 2012. This will be completed by frameworks for banks, e.g. the capital requirements of the Basel Committee and financial stability. A separate chapter describes the Bad Banks in detail. It will be dealt with their reasons, objectives, advantages and disadvantages, portfolio management and also the conditions for establishing. There are presented two types of Bad Banks ? namely decentralized Bad Bank (SPV model) and the central Bad Bank (consolidation model) ? also a delimitation is made to commercial banks. The two presented Bad Banks KA Finanz for Kommunalkredit Austria and FMS Wertmanagement for Hypo Real Estate Holding are the practical part of the master thesis. Furthermore, an analysis on the issue of Bad Banks is performed while looked at three different perspectives: The perspective of the Bad Banks within and between the banks, the perspective of the Bad Banks in the whole market and in a state and the perspective of the Bad Banks in the context of the economic crisis. The presentation of four alternatives of Bad Banks completes the master thesis.