What term describes the process that enables savings institutions to transform into banks?
A.
Demutualisation
B.
Peer-to-peer
C.
Refinancing
D.
Swap
The Answer Is:
A
This question includes an explanation.
Explanation:
Demutualisation refers to the process by which a mutual savings institution, such as a building society, converts into a publicly traded company or bank. This transformation allows the institution to raise capital through equity issuance and expand its services beyond mutual members.
Example:
The Abbey National Building Society in the UK demutualised in the 1980s to become a bank.
[Reference:, ICWIM, Topic: Financial Institutions and Their Structures., FCA Handbook: Demutualisation and Regulation of Financial Institutions., , , , ]
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