Loss absorbing capacity: Difference between revisions

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== See also ==
== See also ==
*[[Bank supervision]]
*[[Bank supervision]]
* [[Capacity]]
*[[Debt]]
*[[Debt]]
*[[Equity]]
*[[Equity]]

Revision as of 20:42, 4 July 2022

Bank supervision - prudential regulation.

(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