PLAC

Primary Loss Absorbing Capital.

Used, especially in the UK, to refer to equity and bail-in-able long term debt of banks that can be written down in case of financial distress. It includes both equity and bail-in-able long-term debt.

The great majority of bank capital in future must be PLAC, in contrast with Secondary Loss Absorbing Capital (SLAC).

See also

• Capital adequacy
• Loss absorbing capacity
• Total Loss Absorbing Capacity

• SLAC - Secondary Loss Absorbing Capital

• GCLAC also referred to as GLAC - gone-concern loss absorbing capital
• MCT