The PRA has published Consultation Paper 12/16: Supervising building societies’ treasury and lending activities (CP12/16). In CP12/16 the PRA sets out proposed changes to Supervisory Statement 20/15 which sets out the PRA’s approach and expectations in its supervision of building societies’ treasury and lending activities. The supervisory statement sets out the PRA’s expectations in respect of societies’ compliance with the requirements of the Building Societies Act 1986 and the PRA Rulebook. In particular the statement describes the key lending and treasury risks to which societies are exposed, and sets out a framework illustrating different potential models for managing and controlling these risks. The lending and treasury approaches set out in the statement are not intended to be ‘one size fits all’, and the portfolio limits suggested are indicative only.
The deadline for comments on CP12/16 is 4 July 2016.
View Supervising building societies’ treasury and lending activities – CP12/16, 4 April 2016