Loss absorbing capacity
From ACT Wiki
Bank supervision - prudential regulation.
(LAC).
In the field of bank resolution and recovery, loss absorbing capacity is the ability of a bank to suffer losses without falling below regulatory minima of capital and requiring re-capitalisation or resolution.
LAC may take the form of equity, subordinated debt, senior unsecured debt, and other unsecured uninsured liabilities.
See also
- Bank supervision
- Capacity
- Debt
- Equity
- GCLAC or GLAC gone-concern loss absorbing capacity
- MREL minimum requirement for own funds and eligible liabilities
- Primary Loss Absorbing Capital (PLAC)
- Prudential regulation
- Recovery
- Resolution
- Secondary Loss Absorbing Capacity (SLAC)
- Senior
- Subordinated debt
- Total Loss Absorbing Capacity
- Unsecured
- Unsecured debt
