Supervising building societies’ treasury and lending activities: consultation
Last updated: 4 Jul 2016
- Consulting body:
- Prudential Regulation Authority
- 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.