Loss absorbing capacity: Difference between revisions
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imported>Doug Williamson m (Move first full stop outside bracket for consistency with other pages. Make See also into headline style as per other pages.) |
imported>Doug Williamson m (Added examples of LAC from http://www.financialstabilityboard.org/publications/r_130716b.pdf - 26/3/14) |
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In the field of bank [[resolution]] and [[recovery]], loss absorbing capacity is the ability of a bank to suffer losses without falling below regulatory minima of capital and requiring re-capitalisation or [[resolution]]. | In the field of bank [[resolution]] and [[recovery]], loss absorbing capacity is the ability of a bank to suffer losses without falling below regulatory minima of capital and requiring re-capitalisation or [[resolution]]. | ||
LAC may take the form of equity, subordinated debt, senior unsecured debt, and other unsecured uninsured liabilities. | |||
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*[[MREL]] minimum requirement for own funds and eligible liabilities | *[[MREL]] minimum requirement for own funds and eligible liabilities | ||
[[Category: | [[Category:Compliance_and_audit]] | ||
[[Category: | [[Category:Risk_frameworks]] | ||
Revision as of 15:05, 26 March 2014
(LAC).
In the field of bank resolution and recovery, loss absorbing capacity is the ability of a bank to suffer losses without falling below regulatory minima of capital and requiring re-capitalisation or resolution.
LAC may take the form of equity, subordinated debt, senior unsecured debt, and other unsecured uninsured liabilities.
See also
- PLAC primary loss absorbing capacity
- SLAC secondary loss absorbing capacity
- GCLAC or GLAC gone-concern loss absorbing capacity
- MREL minimum requirement for own funds and eligible liabilities
