Difference between revisions of "Loss absorbing capacity"

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Revision as of 11:48, 24 March 2014

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.

See also

  • PLAC primary loss absorbing capacity
  • SLAC secondary loss absorbing capacity
  • GCLAC or GLAC general loss absorbing capacity
  • MREL minimum requirement for own funds and eligible liabilities