Loss absorption amount: Difference between revisions
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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. | ||
Revision as of 08:29, 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 itself comprises the total of a bank's:
- Loss absorption amount; and
- Recapitalisation amount.
