Charlotte Gerken of the PRA has spoken on changes in and regulatory plans for supervising mutuals. She focussed on building societies, as her speech was to the BSA, and highlighted the PRA’s decision to withdraw its Building Societies Sourcebook and the greater flexibility this gives firms to ensure risk management reflects their business models and governance.
There is one building society in the new scale up unit, which, alongside other measures, shows that regulatory actions are allowing building societies to grow by removing some of the previous restraints.
The PRA is focusing on:
- capital predictability;
- cost challenges;
- its supervisory approach; and
- sustainable growth.