Building societies enjoy an increase in deposits
June 27, 2008
According to recent reports many building societies are enjoying a huge increase in business following the chaos at Northern Rock in September, when many customers withdrew a combined total of over £2 billion amidst fears that the bank was on the verge of collapse. The fears came after consumers found out that the bank, which was the fifth largest mortgage lender in the nation, had taken an emergency loan from the Bank of England.
However, as Northern Rock continues to lick its wounds following the crisis many other building societies are raking in the profits, as savers flock to look for alternatives after withdrawing their cash from Northern Rock. Reports claim that net receipts for building societies rocketed by over 180% in September when the crisis occurred, taking the total amount of money deposited in building societies to around £2.8 million.
These findings came shortly after a survey that indicated consumers in the UK had lost faith in banking by a huge degree recently, and this is a situation that is thought to have been fuelled by various factors such as the Northern Rock situation and the ongoing row over bank charges. The survey results showed that consumer confidence in building societies was slightly higher, and the level of deposits made at building societies in September seems to back this up.
One official stated that building societies were seen as less likely to run into the same sorts of problems as Northern Rock because of their more stringent lending criteria. He stated: ‘Building societies have always undertaken less fiscal lending but over the past year, as economic conditions have worsened, they have tightened their lending practices.’
Recent additions:
- Chancellor responds to questions from the Treasury
- Faster bank transfers could mean increase risk of fraud
- Switching banks was rife this year
- Rochdale credit union collapses
Related Articles
- Boom for building societies in 2007 A recent report has shown how building societies across the UK enjoyed record deposits last year, with the level of money pumped into building societies
- Alliance and Leicester launches account for over 50s The Alliance and Leicester has launched a new bank account that is specifically aimed at the over 50s, known as the Premier 50 account. The
- Building society deposits rocket The amount of money that savers are depositing in building societies has rocketed following the recent Northern Rock crisis. Septembers saw the level of deposits made
- Thousands of consumers claim lost money Following a campaign from the government thousands of people across the UK have claimed money that was left lying on dormant accounts for many years.
- Officials claim building societies looking healthy Over recent weeks there have been a number of reports claiming that building societies in the UK are now starting to really feel the effects
Comments
Got something to say?