Treasury issues mutual capital discussion paper

The paper includes includes improving corporate governance and looking at new funding and capital models. Building societies have been historically well capitalised and coped with the economic conditions strongly. However, the new regulatory environment and increased market competition means reforms are needed in various areas to improve the resilience of the building society model. The Treasury's suggestions include creating more resilient capital instruments, ranking as Core Tier 1 or Tier 1; modifying the existing capital instruments to make them more resilient under stress; increa...