Background
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. There are many moving parts to follow. 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. They 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.
