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 Minimum Requirement for Own Funds and Eligible Liabilities (MREL) used in the European Bank Recovery and Resolution Directive.