How building societies can manage change in prudential regulation

Piecing it together

The regulatory environment remains challenging not just for banks, but also building societies, as the introduction of more and tougher prudential standards ‘raises the bar’ and extends the reach of regulation. To gain a complete picture, building societies need to pull together several, sometimes disparate initiatives and understand the inter-linkages between them.

In this paper, Deloitte’s EMEA Centre for Regulatory Strategy explores these issues, and sets out a simple framework for managing change in the new prudential environment.

The simplicity of the framework belies the amount of work that lies ahead. Building societies need to make a significant resource investment in order to tackle this properly and should not respond to each initiative in isolation.

Some initiatives are overlapping; not all initiatives will introduce regulation that is more constraining than that which societies already face. The aggregate view of regulatory developments ultimately needs to consider other factors, external and internal to the society.

About the EMEA Centre for Regulatory Strategy

The EMEA Centre for Regulatory Strategy monitors regulatory developments and provides an expert, objective perspective on opportunities and challenges for clients. It utilises Deloitte’s Risk and Regulation, Strategy Consulting and other relevant areas of expertise to understand, influence and advise on regulatory change, with a particular focus on the strategic business model and aggregate impacts.

The Centre is headquartered in London with local representation across Europe. Our core team of dedicated professionals has extensive experience in regulation, through a combination of former regulators and risk and regulation strategy advisors and consultants.

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