BUSINESS advisory firm Deloitte says the building society sector is poised for resurgence.
Deloitte’s latest Building Societies Update said the sector was likely to thrive in the year ahead – off the back of strong capital levels and robust governance structures now in place at most building societies.
Stephen Williams, head of Deloitte’s building societies team and a partner based in West Yorkshire, said: “Societies typically have good levels of capital and financial liquidity. Additionally, societies are competing against the big players with attractive products in the market.”
Deloitte reviewed the capital position of a sample drawn from the largest 40 building societies. Based on this, Deloitte concluded that all the societies sampled would meet cash requirements set out in Basel III in December, 2009.
Mr Williams said: “Despite the challenges that new regulation like Basel III can present, societies appear to be well placed to respond to requirements for increased levels and quality of capital, funding and liquidity.”
