Coefficient of variation and GCLAC: Difference between pages

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A measure of the variability of a distribution, expressed as a proportion of the expected value.
Gone concern loss absorbing capacity.


It is calculated as: [Standard Deviation]/[Expected value].
Usage is (early 2014) still developing in this field of bank recovery and resolution and the acronym is sometimes just GLAC 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.


For example;


if the Standard deviation of the Net Present Value of a project = $100m,
== See also ==


and the Expected Net Present Value = $50m, then:
*[[Capital adequacy]]


Coefficient of variation
*[[PLAC]]


= $100m/$50m
*[[SLAC]]


= 2.0.
*[[Gone concern]]


 
[[Category:Regulation_and_Law]]
== See also ==
* [[Expected value]]
* [[Net present value]]
* [[Standard deviation]]

Revision as of 11:39, 24 March 2014

Gone concern loss absorbing capacity.

Usage is (early 2014) still developing in this field of bank recovery and resolution and the acronym is sometimes just GLAC 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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