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Building Society Sourcebook

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The Building Society Sourcebook (Half-day)

The building societies sourcebook is guidance that has been provided to building societies by the regulator. It explains the different approaches that may be used for lending, treasury, funding and risk management.

This course covers:

  • The background to the Sourcebook
  • The different lending and treasury approaches
  • Treasury investments & liquidity
  • Funding sources
  • Risk management

Societies must assign themselves to a category or approach that best describes their business.

The simpler approaches restrict the business and products that can be offered. The higher level approaches require more resources and management expertise.

The regulator uses the sourcebook as a benchmark and can restrict the business or call for improved processes and resources where they are deemed necessary.

Senior managers should therefore have a working knowledge of the sourcebook and how it affects the society in order to be able to respond to any regulatory challenge.

This course is designed for such a senior management group who have either direct lending, treasury or risk responsibility.

Full details are below.

Morning or Afternoon

What BSOCS is about

  • Background
  • Oversight
  • How it works

BSOCS 1: Introduction

  • Application
  • The Approaches
  • The role of Societies

BSOCS 2: Lending

  • Affordability
  • Non-traditional lending
  • Lending policy

BSOCS 3: Treasury Investments & Liquidity Risk Management

  • Purpose
  • Liquidity Policy Statement
  • Liquidity risk management
  • Assets

BSOCS 4: Funding

  • Background
  • Sources

BSOCS 5: Financial Risk Management

  • Outline of risks
  • Hedging
  • Systems
  • Policy statement on financial risk management
  • IT
  • Board MI
  • Stress testing
  • Credit exposures
  • Role of Audit

BSOCS 6: Diversification

  • Restrictions

 End of workshop & review

Related Documents

Registration RequiredRegulation > Consultation Paper 09/17: A Specialist Sourcebook for Building Societies June 2009 100% relevant

1st August 2009

The general thrust of the CP is that Societies must prove that they have both the management and the systems capable of effectively dealing with the risks they face. This is part of the enhanced supervisory approach now adopted by the FSA. It states that systems and controls must match the level of complexity in a firm's business model. The FSA will adopt a more interventionist approach in order to ensure this is the case. The proposal is that building societies and the regulator will determine whether the risk management policies adopted are appropriate. Where they are not the Society can either simplify its business or improve its risk management. The FSA also intends to limit societies diversifying their business without a full assessment of capital adequacy. The FSA has considered applying similar CP 17 guidance to the banking sector but has decided on account of the "lack of homogeneity" that this would not be practical and in their case a firm-by-firm approach is more appropriate. The CP addresses treasury and lending. It contains five approaches to treasury management, three areas of treasury guidance and three approaches to lending. Consultation closes on 5th September 2009 with implementation due in early 2010 when a new Building Societies Sourcebook (BSOCS) will replace IPRU-BSOC.

Free to ViewTreasury Consulting for Building Societies 100% relevant

6th August 2010

In the current environment building societies are finding it difficult to keep up with the changes that are affecting them. One area that causes concern is treasury. That's because it's a specialist area and regulation has become much more intrusive. A common difficulty faced by societies when dealing with treasury risk is the limited expertise that is available. This is where consulting can help you. It has a number of advantages:

Free to ViewTreasury Management for Building Societies 100% relevant

Free to ViewBank and Building Society Credit Analysis 69% relevant

Free to ViewTreasury management for building societies 69% relevant

26th February 2011

Free to ViewPolicy Statement 10/5 Presentation 38% relevant

28th July 2010

This presentation was delivered to non executive directors of building societies on 27th and 28th July 2010. It is about the new sourcebook and how it affects a society's treasury.