Loss absorbing capacity: Difference between revisions
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(LAC). | (LAC). | ||
In the field of bank | 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. | LAC may take the form of equity, subordinated debt, senior unsecured debt, and other unsecured uninsured liabilities. | ||
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*[[GCLAC]] or GLAC gone-concern loss absorbing capacity | *[[GCLAC]] or GLAC gone-concern loss absorbing capacity | ||
*[[MREL]] minimum requirement for own funds and eligible liabilities | *[[MREL]] minimum requirement for own funds and eligible liabilities | ||
* [[Recovery]] | |||
* [[Resolution]] | |||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Revision as of 15:30, 22 November 2016
Bank supervision
(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
- Bank supervision
- Total Loss Absorbing Capacity
- 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
- Recovery
- Resolution
