PLAC

From ACT Wiki
Revision as of 12:43, 25 June 2022 by imported>Doug Williamson (Links ordering.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

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).


PLAC is sometimes expressed as Primary Loss Absorbing Capacity.


See also