The Building Societies Association (BSA) represents all 44 UK building societies. Building societies are UK-based mutual credit institutions which have total assets of over £330 billion and, together with their subsidiaries, hold residential mortgages of over £250 billion, 19% of the total outstanding in the UK. They hold almost £240 billion of retail deposits, accounting for 19% of all such deposits in the UK. They employ approximately 39,000 full and part-time staff and operate through approximately 1,550 branches.
The BSA is a member of the European Association of Cooperative Banks (EACB) and we have been actively involved in the preparation of the EACB's response to the EBA's consultation on sound remuneration practices. We fully support the EACB's analysis and identification of matters which need to be addressed. In particular, we share the EACB's concerns about the absence of proportionality in the EBA's proposals and the inappropriateness to mutuals, such as building societies, of any requirement to pay a proportion of variable remuneration in the form of shares or share-like instrument. We appreciated the opportunity to participate in the EACB's meeting with the EBA on 1 June 2015, which was most constructive.