Debt market strategy
Our funding strategy is consistently evolving, and like many financial institutions, we rely on other forms of funding, such as money market deposits and repo facilities. As a mutual, the Group is legally required to obtain at least 50% of its funding through retail member deposits. As at 31 December 2019 this percentage was 82% which is significantly in excess of the minimum requirement. It is the Society's aim to maintain a position which is significantly above the legal limit.
The Treasury Department is responsible for managing a number of areas, including liquidity and wholesale market activities. Access to the wholesale markets allows the Society to smooth out variations in savings flows and moderates reliance upon traditional sources of funding. The Society has raised wholesale funds by issuing floating and fixed rate notes under its medium term note programme and Covered Bond programme, and by issuing residential mortgage backed securities through Darrowby No. 4 plc and Darrowby No. 5 plc. The Society has also raised capital via the issuance of subordinated debt and Permanent Interest Bearing Shares (PIBS).