PHILIP DEARING

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COLLECTIVE ACTIVITY IN THE MUTUAL SECTOR
- Progress or Procrastination?
PHILIP DEARING Managing Director 20 November 2008
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• Lot has changed since title drafted!
• Start with focus on Building Societies where
  progress has been made
• Look at wider picture, identify drivers for
  further progress
• Consider a continental model
• What the future might hold

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• Mutual One 1996 an early example of collective
  activity
• Eight early shareholders but no management
• Sale of 80 shares to Skipton Building Society
• Financial Objectives
• Audit
• - 15 Fully Outsourced Building Societies
• - 7 Specialist Audit Building Societies
• - 4 Friendly Societies
• - 4 Co-operatives
• - British Wool Marketing Board
• - National Health Service

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• Compliance 15
• Insurance 14
• Seminars Conferences Training
• New Media
• IT 5 Building Societies 1 offshore bank

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• Mutual Plus (Yorkshire Britannia)
• Mutuo
• CRTG etc

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DRIVERS FOR CHANGE (1)

• Economy GDP, FTSE, BBR, LIBOR, Currencies, RM
  Fuel, RPI, A/v Earnings, Housing market,
  Unemployment
• This is a once in a lifetime crisis possibly
  the largest financial crisis of its kind in human
  history
• Recession not depression

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DRIVERS FOR CHANGE (2)

• Northern Rock
• Bear Stearns
• Lehmans
• BBG
• Iceland
• Lloyds TSB/HBOS/RBS

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DRIVERS FOR CHANGE (3)

• Chelsea - Catholic
• Nationwide Derbyshire Cheshire
• Yorkshire Barnsley
• Skipton - Scarborough
• Britannia Co-op?
• Friendly Societies Credit Unions

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DRIVERS FOR CHANGE (4)
Key Regulatory Governance Issues

• Liquidity / Cashflow
• Capital
• Costs
• Profitability
• Contingency Planning
• Boards Management

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OTHER MODELS

• Credit Agricole
• Informal Groupings

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FUTURE

• Economy will expedite pace of change
• Governance may also expedite pace of change
• Trust management willingness are the key to
  moving from collaboration to collective activity
  and ensuing benefits

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COLLECTIVE ACTIVITY IN THE MUTUAL SECTOR
- Progress or Procrastination?
PHILIP DEARING Managing Director 20 November 2008
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