Loss absorption amount: Difference between revisions
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imported>Doug Williamson (Create the page. Source: BoE http://www.bankofengland.co.uk/financialstability/Documents/resolution/mrelconsultation2015.pdf) |
imported>Doug Williamson (Classify page.) |
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''Bank | ''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. | 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: | |||
MREL itself comprises the total of a bank's: | |||
*Loss absorption amount; and | *Loss absorption amount; and | ||
*Recapitalisation amount. | *Recapitalisation amount. | ||
| Line 13: | Line 14: | ||
*[[MREL]] | *[[MREL]] | ||
*[[Recapitalisation amount]] | *[[Recapitalisation amount]] | ||
* [[Recovery]] | |||
*[[Resolution]] | *[[Resolution]] | ||
*[[Total Loss Absorbing Capacity]] | *[[Total Loss Absorbing Capacity]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 18:05, 1 July 2022
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 itself comprises the total of a bank's:
- Loss absorption amount; and
- Recapitalisation amount.
