PLAC and Probability of Default: Difference between pages

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Primary Loss Absorbing Capital.
(PD).


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.
Probability of Default means an assessment of the probability that the counterparty to a loan will default within a specified timeframe, usually one year.
 
 
The great majority of bank capital in future must be PLAC, in contrast with Secondary Loss Absorbing Capital (SLAC).




== See also ==
== See also ==


*[[Capital adequacy]]
* [[Credit rating]]
*[[Loss absorbing capacity]]
* [[Default]]
*[[MREL]]
* [[Expected loss]]
*[[TLAC]]
* [[Exposure At Default]]
*[[Total Loss Absorbing Capacity]]
* [[IRB]]
 
* [[Loss Given Default]]
*[[SLAC]] - Secondary Loss Absorbing Capital
 
*[[GCLAC]] also referred to as GLAC - gone-concern loss absorbing capital
*[[MCT]]
*[[Bailin]]
 
[[Category:Compliance_and_audit]]
[[Category:Risk_frameworks]]

Revision as of 17:16, 1 November 2016

(PD).

Probability of Default means an assessment of the probability that the counterparty to a loan will default within a specified timeframe, usually one year.


See also

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