He told delegates the government has the opportunity to support the mutual sector now.
“We have an opportunity with the current disposal of state assets, especially with RBS, to ask ourselves what pattern of what provision we want in terms of lending. Without action being taken there is a chance the oppportunity will recede as before and these assets will be gobbled up.”
Darling added that he fully understands why the new government wanted to overhaul the regulatory system.
“In relation to the incoming Financial Policy Committee, it does in theory have the powers to affect the availability of mortgages to influence interest rates – this is new and unchartered territory and no one else is doing this. We will have to keep a close eye on this.
“At the end of the day the regulator has to make the right judgement calls to avoid further risks.”
When asked by a delegate whether more should have been done to remutualise Northern Rock, Darling said that if someone could come up with the capital, it could have happened.
However, he admitted that the government would never have been able to buy it up without an investor.
