Loss absorbing capacity

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.

See also

• PLAC primary loss absorbing capacity

• SLAC secondary loss absorbing capacity

• GCLAC or GLAC general loss absorbing capacity

• MREL minimum requirement for own funds and eligible liabilities