Primary Loss Absorbing Capital

(PLAC).

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

• Capital adequacy
• Loss absorbing capacity
• MREL
• Principal write down
• TLAC
• Total Loss Absorbing Capacity

• SLAC - Secondary Loss Absorbing Capital

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