The Governor reviews the changes that are taking place in the nature of the mortgage market and in the markets for deposits and points up the implications of these changes-particularly the prudential implications-for profitability, risk and capital adequacy. He goes on to consider some of the opportunities opened up for the societies through diversification, but notes that this too has its risks as well as making new demands on capital and on management skills and resources.
Building societies: a changing role - Governor's speech