CML wants building society help
Share
The Council of Mortgage Lenders is urging the government to consider capital issues for building societies.
Responding to the publication of the Treasury discussion paper “Building society capital and related issues”, the CML wants capital issues be considered alongside regulatory and funding problems.
The paper was issued prior to the formation of the coalition and considers actions to support the mutual sector.
Michael Coogan, director of the CML, says that building societies competitiveness has been “significantly undermined” by low interest rates and a range of factors.
He adds: “We believe more needs to be done to ensure the long term contribution of a thriving mutual sector to future competitiveness and growth in the UK retail markets.
“Reform is needed to ensure the future resilience of the building society model, and we hope the new government will take a wider view on the actions that could help, including taking another look at the regulatory burden on societies and examining funding issues, and not focus exclusively on capital issues.”
