TLAC or T-LAC - TLAC is an abbreviation for total loss absorbing capacity used by the Financial Stability Board (FSB). It can also be referred to as T-LAC. It describes the debt or capital available to absorb losses in (mostly) banks.

 

TLAC is closely related to (but different from) the term <a href="https://quoteddata.com/glossary/minimum-requirement-for-own-funds-and-eligible-liabilities-mrel/">Minimum Requirement for Own Funds and Eligible Liabilities (MREL)</a> used in the European Bank Recovery and Resolution Directive.