Primary Loss Absorbing Capital
From ACT Wiki
(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
- Bailin
- Capital adequacy
- GCLAC also referred to as GLAC - gone-concern loss absorbing capital
- Loss absorbing capacity
- MREL
- Primary
- Principal write down
- SLAC - Secondary Loss Absorbing Capital
- Total Loss Absorbing Capacity (TLAC)
