Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has plans to review the regulatory requirement on withdrawable capital for co-operative and mutual banks.

The Government recognises the value of co-operatives. It is clear that they offer a different form of running a business, with a focus on delivering the services their members and communities need. Furthermore, the Government welcomes the efforts to establish regional mutual banks and recognises the importance of diversity in the banking system.

The Government also recognises that, given their distinct ownership model, raising capital may present challenges for co-operatives. To support this, in 2014 the Government raised the limit of withdrawable share capital that a member can hold from £20,000 to £100,000 to give co-operatives greater flexibility to raise capital.

The Government does not have any current plans to review this legislation.