LAC

Loss absorbing capital

In the field of bank resolution and recovery capital available as equity to be written down or to be converted to equity ("bail-in-able") before creditors generally, not contractually bail-in-able, are hit in a bank failure or threatened failure.

See also

• PLAC primary loss absorbing capital

• SLAC secondary loss absorbing capital

• GCLAC or GLAC, gone-concern loss absorbing capital

• MREL Minimum Requirement for own funds and Eligible Liabilities