Mark Hoban (Financial Secretary, HM Treasury; Fareham, Conservative)
The Government White Paper “Banking Reform: delivering stability and supporting a sustainable economy”, published on
“The future of building societies” sets out the Government’s aim to maintain the distinctiveness of the sector while creating a level playing field and removing unnecessary barriers to growth. It will amend the Building Societies Act to widen the opportunities for building societies and to align them with the ring-fenced banks without compromising their mutuality and the pivotal role they play in supporting the aspirations of families. The loss-absorbency proposals will apply to building societies as they will for banks of a similar profile. More detail will be announced in due course.
Furthermore, the Government are open to reviewing those parts of the Building Societies Act that the sector believes restrict them, where this is in accordance with maintaining their distinctiveness as part of their drive to foster diversity in the financial sector.
The discussion document is available on HM Treasury’s website, and copies have been placed in the Libraries of both Houses.