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) |
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''Bank [[resolution]] and [[recovery]] - capital adequacy | ''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. | ||
Revision as of 08:28, 13 November 2016
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.
