BSA comments on the publication of the second report by the Parliamentary Commission on Banking Standards

Commenting on the publication of the second report by the Parliamentary Commission on Banking Standards, Adrian Coles, Director-General of the Building Societies Association said:

"It is clear from the this morning's report that there the Committee has strong feelings about the right percentage level for the minimum leverage ratio. Our contention remains that to have a single high leverage ratio that applies to all institutions, systemic banks and new and existing challengers like building societies alike, misses the point. As the Government has previously recognised, there are potential detrimental impacts on low risk institutions from a leverage ratio which is the primary capital constraint. What is needed is a range of leverage ratios which are applied based on the riskiness of different business models.  This is the direction in which Europe is clearly already going."

"The Parliamentary Commission welcomes the Government's acceptance of it's recommendation to consider the impact on competition when setting the level of the de minimis exemption. We think this explicit consideration makes it even more relevant to examine the potential disparity between building societies – all of which will be effectively ring-fenced – and the considerable number of banks below the £25 billion threshold which would not be ring-fenced even though they are substantial in size."


Notes to Editors:

1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 46 UK building societies. Mutual lenders and deposit takers have total assets of over £375 billion and, together with their subsidiaries, hold residential mortgages of £245 billion, 20% of the total outstanding in the UK. They hold more than £250 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for 31% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

2. Contact: Hilary McVitty – / 020 7520 5926

3. Photographs of Adrian Coles are available from the BSA press office, or from the Association's website at or Headlinemoney


Katie Wise
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway

Tel: 020 7520 5904
Twitter: @BSABuildingSocs