Loss absorbing capacity: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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*[[GCLAC]] or GLAC gone-concern loss absorbing capacity
*[[GCLAC]] or GLAC gone-concern loss absorbing capacity
*[[MREL]] minimum requirement for own funds and eligible liabilities
*[[MREL]] minimum requirement for own funds and eligible liabilities
*[[PLAC]] primary loss absorbing capacity
*[[Primary Loss Absorbing Capital]] (PLAC)
*[[Prudential regulation]]
*[[Prudential regulation]]
* [[Recovery]]
* [[Recovery]]

Revision as of 12:29, 25 June 2022

Bank supervision - prudential regulation.

(LAC).

In the field of bank resolution and recovery, loss absorbing capacity is the ability of a bank to suffer losses without falling below regulatory minima of capital and requiring re-capitalisation or resolution.

LAC may take the form of equity, subordinated debt, senior unsecured debt, and other unsecured uninsured liabilities.


See also