Primary Loss Absorbing Capital

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Revision as of 12:38, 25 June 2022 by imported>Doug Williamson (Mend link.)
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(PLAC).

Used, especially in the UK, to refer to equity and bail-in-able long term debt of banks that can be written down in case of financial distress. It includes both equity and bail-in-able long-term debt.


The great majority of bank capital in future must be PLAC, in contrast with Secondary Loss Absorbing Capital (SLAC).


PLAC is sometimes expressed as Primary Loss Absorbing Capacity.


See also