UK bank account holders are being advised to keep an eye on early 2026, after Nationwide Building Society confirmed a key review that could lead to changes in how banking services are delivered across the sector.
Nationwide, the UK’s second-largest provider of savings and mortgages, says existing banking rules may be limiting its ability to expand services for its more than 16 million members. Any changes would not only affect Nationwide but could also apply to other major UK banks and building societies.
Background
Nationwide operates as a mutual, meaning it is owned by its members rather than shareholders. This structure allows profits to be returned to customers in various ways.
In recent years, Nationwide has issued Fairer Share Payments on three occasions, providing £100 each time to eligible members. In 2025 alone, more than four million customers received the payment.
The society is also currently offering a £175 switching incentive for customers who move their current account to Nationwide.
Rules
At the centre of the debate are capital requirements set by financial regulators. These rules require banks and building societies to hold a certain amount of capital relative to their assets, ensuring they can absorb losses during economic stress.
While many of these requirements are set internationally, the UK applies an additional safeguard known as the leverage ratio buffer.
Sarah Harrison, chief executive of the Building Societies Association, told the Treasury Committee that this extra UK buffer can place unnecessary strain on lower-risk lenders such as mutuals.
She explained that some building societies are required to hold significantly more capital than their risk profiles justify.
Capacity
According to Ms Harrison, Nationwide has indicated that if the leverage ratio buffer were reduced or reformed, the society could potentially unlock up to £30 billion in additional capital.
That capital could be used to expand mortgage lending, business loans and other services for members.
Nationwide said leverage ratio reform could increase lending capacity without weakening financial stability. The society added that easing the buffer would help support economic growth and align with the government’s ambition to double the size of the mutual sector.
Review
The Financial Policy Committee (FPC), which sits within the Bank of England, is responsible for reviewing capital requirements for banks and building societies.
In a report published in December 2025, the FPC confirmed it is considering changes to the leverage ratio buffer. The committee said it would begin structured evidence-gathering sessions in early 2026 as part of this review.
A further update is expected in the next Financial Stability Report, due to be published on July 7.
Expansion
During the Treasury Committee session, Ms Harrison also highlighted recent consolidation within the mutual sector, including Nationwide’s acquisition of Virgin Money.
The takeover was completed in October 2024. Following the deal, Nationwide paid a £50 bonus to millions of members and said the expansion had strengthened its ability to invest in products and customer service.
Nationwide reported a £2.3 billion gain on completion of the acquisition, which it said would help fund integration costs, improve services and deliver better value to customers.
What It Means
For customers, no immediate changes to bank accounts have been announced. However, decisions made in early 2026 could influence future lending levels, mortgage availability and the range of services offered by mutuals such as Nationwide.
Any regulatory changes would be subject to further consultation and oversight before being implemented.
FAQs
What change is being reviewed in early 2026?
Capital rules affecting banks and building societies.
Which bank is involved in the update?
Nationwide Building Society.
What is the leverage ratio buffer?
An extra UK capital requirement for lenders.
How much capital could Nationwide unlock?
Up to £30 billion, according to estimates.
