Loss absorption amount
From ACT Wiki
Jump to navigationJump to search
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.