Principal write down

(PWD).

The capacity of a financial instrument to absorb losses by a reduction (write down) of its principal amount repayable.

See also

• Additional Tier 1
• Capital adequacy
• Contingent convertible capital
• Loss absorbing capacity
• PLAC
• Tier 2
• TLAC
• Total Loss Absorbing Capacity

• SLAC - Secondary Loss Absorbing Capital

• GCLAC also referred to as GLAC - gone-concern loss absorbing capital
• MCT
• Bailin