From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

  1. Home
  2. Policy
  3. Consultation responses
  4. Supervising building societies’ treasury and lending activities: consultation

Supervising building societies’ treasury and lending activities: consultation

Last updated: 4 Jul 2016

Consulting body:
Prudential Regulation Authority
Status:
Closed
Period of consultation:
Runs from 2 April 2016 to 4 July 2016
CML action:
Response submitted

The Prudential Regulation Authority (PRA) has published a call for evidence on supervising building societies’ treasury and lending activities, which includes proposals to update Supervisory Statement 20/15

This supervisory statement sets out the approach and expectations of the PRA to its supervision of building societies’ treasury and lending activities. This statement complements the requirements of the Building Societies Act 1986 and is aimed at all building societies.

We have now responded to the PRA’s consultation paper on Supervising building societies’ treasury and lending activities.  

While we support the overall framework aligning risk and capital, we are keen to ensure that a perceived negative assessment of the risks involved with certain types of lending does not discourage new entrants from extending mortgages in these markets. We believe that with appropriate lending conduct, risk mitigation, and governance these potential risks can be adequately managed.

Download the full response below.