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.
- Capital adequacy
- Loss absorbing capacity
- Primary Loss Absorbing Capital
- Principal write down
- Total Loss Absorbing Capacity
- SLAC - Secondary Loss Absorbing Capital