Primary Loss Absorbing Capital

From ACT Wiki
Revision as of 10:03, 12 September 2024 by Doug (talk | contribs) (Mend link.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

(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