Loss absorbing capacity: Difference between revisions
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imported>Doug Williamson m (Added examples of LAC from http://www.financialstabilityboard.org/publications/r_130716b.pdf - 26/3/14) |
imported>Doug Williamson (Link with MCT page.) |
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Revision as of 16:05, 22 November 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
