Total Loss Absorbing Capacity: Difference between revisions
imported>John Grout (To update for passage of 2014/59/EU and minor items) |
imported>Doug Williamson (Make branding consistent.) |
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TLAC | (TLAC.) | ||
''Bank [[resolution]] and [[recovery]]'' | ''Bank [[resolution]] and [[recovery]]'' | ||
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Internal TLAC applies to subsidiaries of a resolution entity not being resolved in the entity's home jurisdiction and can include for example collateralised guarantees provided from the parent. | Internal TLAC applies to subsidiaries of a resolution entity not being resolved in the entity's home jurisdiction and can include for example collateralised guarantees provided from the parent. | ||
See also | == See also == | ||
*[[Capital adequacy]] | *[[Capital adequacy]] | ||
Revision as of 21:39, 3 December 2014
(TLAC.)
Bank resolution and recovery
The term eventually favoured by the FSB (replacing Gone-concern or Gone Concern Loss Absorbing Capacity - GCLAC or GLAC) to describe the debt or capital available to absorb losses in mostly banks.
Closely related to (but different from) the term Minimum Requirement for Own Funds and Eligible Liabilities (MREL) used in the European Bank Recovery and Resolution Directive.
As at the end of 2014, TLAC is due to be applied to G-SIBs not before 1 January 2019.
External TLAC applies to each resolution entity in a bank group.
Internal TLAC applies to subsidiaries of a resolution entity not being resolved in the entity's home jurisdiction and can include for example collateralised guarantees provided from the parent.
