SLAC

Secondary Loss Absorbing Capital.

In the field of bank recovery and resolution SLAC is used, especially in the UK, to refer to other liabilities that could be written down in a distressed institution but would not be first in the firing line - that being primary loss absorbing capital (PLAC) comprising equity and bail-in-able long-term debt. The Financial Stability Board uses the term gone-concern loss absorbing capital (GLAC or GCLAC) more broadly.

SLAC is sometimes expressed as Secondary Loss Absorbing Capacity, reflecting the fact that some loss-absorbing capacity is provided by items which are not necessarily capital instruments, for exam via bailin.

See also

• Bailin
• Capital
• Capital adequacy
• Contingent capital
• Loss absorbing capacity
• PLAC
• GCLAC also referred to GLAC
• Recovery
• Resolution