Loss absorption amount: Difference between revisions
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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. | ||
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*[[Recapitalisation amount]] | *[[Recapitalisation amount]] | ||
*[[Resolution]] | *[[Resolution]] | ||
* [[Recovery]] | |||
*[[Total Loss Absorbing Capacity]] | *[[Total Loss Absorbing Capacity]] | ||
Revision as of 16:25, 15 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.
