Secondary Loss Absorbing Capital

Treasury - banking - recovery - resolution - supervision - regulation.

(SLAC).

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
• Equity
• Financial Stability Board (FSB)
• GCLAC also referred to GLAC
• Loss absorbing capacity
• Primary Loss Absorbing Capital (PLAC)
• Recovery
• Regulation
• Resolution
• Supervision
• Treasury