Credit risk and GLAC: Difference between pages

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1.
Gone-concern Loss Absorbing Capacity.


The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.
Usage continues to develop in this field of bank recovery and resolution and the acronym is sometimes GCLAC that might be seen as "Gone Concern Loss Absorbing Capacity".


In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
GLAC focuses on the loss absorbing capacity of bail-in-able debt to replenish equity.




2.
== See also ==


A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.
*[[Capital adequacy]]
*[[Loss absorbing capacity]]
*[[Primary Loss Absorbing Capital]]  (PLAC)


*[[SLAC]]


== See also ==
*[[Gone concern]]
* [[Banker's payment]]
* [[Bailin]]
* [[CCR]]
* [[Counterparty risk]]
* [[Covenant]]
* [[Credit]]
* [[Credit default swap]]
* [[Credit derivative]]
* [[Credit exposure]]
* [[Credit rating]]
* [[Credit rating agency]]
* [[Credit risk diversification]]
* [[Capital risk]]
* [[ECL]]
* [[Event risk]]
* [[Exchange-for-value system]]
* [[High-yield]]
* [[KMV]]
* [[Merton distance-to-default]]
* [[Operational risk]]
* [[Pre-settlement risk]]
* [[Price risk]]
* [[Prime bank]]
* [[Principal risk]]
* [[Putting a limit on losses]]
* [[Replacement cost risk]]
* [[Reputational risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[TED spread]]
* [[Transaction risk]]


[[Category:Manage_risks]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 12:33, 25 June 2022

Gone-concern Loss Absorbing Capacity.

Usage continues to develop in this field of bank recovery and resolution and the acronym is sometimes GCLAC that might be seen as "Gone Concern Loss Absorbing Capacity".

GLAC focuses on the loss absorbing capacity of bail-in-able debt to replenish equity.


See also

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