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Bank resolution and recovery

Gone Concern Loss Absorbing Capacity.

Usage in the field of bank recovery and resolution has taken time to develop. The acronym was sometimes just GLAC that is defined as 'Gone-Concern Loss Absorbing Capacity'.

GCLAC focused on the loss absorbing capacity of bail-in-able debt to replenish equity.

The FSB, that had used 'GLAC' has now changed to the term Total Loss Absorbing Capacity (TLAC).

See also