Regulating building societies

Ensuring prudential regulation

Description

Regulating building societies involves establishing and enforcing standards for their financial management, governance, and customer protection. This strategy aims to ensure the stability and integrity of these member-owned financial institutions, prevent mismanagement or fraud, and safeguard depositors’ interests. Key actions include setting capital requirements, monitoring lending practices, mandating transparent reporting, and conducting regular audits. Effective regulation addresses risks of insolvency, promotes public confidence, and supports the sustainable provision of housing finance.