Loss absorption amount

Bank resolution and recovery - capital adequacy.

The loss absorption amount is the component of a bank's Minimum Requirement for own funds and Eligible Liabilities (MREL) which is considered necessary to absorb losses up to and in resolution.

MREL comprises the total of a bank's:

• Loss absorption amount; and
• Recapitalisation amount.

See also

• Capital adequacy
• MREL
• Recapitalisation amount
• Resolution
• Total Loss Absorbing Capacity