building society


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Building Society

A bank owned by its depositors and borrowers, who are called members. Building societies primarily make mortgage loans to their members. The first building societies were started in England in the late 18th century; most of them were voluntarily dissolved when all their members owned houses. Building societies became able to conduct banking services other than deposits and loans in the mid-1980s. Since then, most of them have demutualized and have become regular banks. In 2010, there were approximately 50 building societies left in the United Kingdom.

building society

a financial institution which offers a variety of savings accounts to attract deposits, mainly from the general public, and which specializes in the provision of long-term MORTGAGE loans used to purchase property In recent years, many of the larger UK building societies have moved into the estate agency business. Additionally, they have entered into arrangements with other financial institutions whereby they are enabled to provide their depositors with limited banking facilities (the use of cheque books and credit cards, for instance) and other financial services, a development which has been given added impetus by the BUILDING SOCIETIES ACT 1986. Most notably, major building societies such as the Abbey National and Halifax have taken advantage of changes introduced by the BUILDING SOCIETIES ACT, 1986 and the FINANCIAL SERVICES ACT, 1986 and have converted themselves into public JOINT STOCK COMPANIES setting themselves up as ‘financial supermarkets’ offering customers a banking service and a wide range of personal financial products, including insurance, personal pensions, unit trusts, individual savings accounts (ISAs) etc. This development has introduced a powerful new competitive impetus into the financial services industry, breaking down traditional ‘demarcation'boundaries in respect of ‘who does what’, allowing former building societies to ‘cross sell’ these services and products in competition with traditional providers such as the COMMERCIAL BANKS, INSURANCE COMPANIES, UNIT TRUSTS, etc. See ESTATE AGENT.

building society

a financial institution that offers a variety of savings accounts to attract deposits, mainly from the general public, and which specializes in the provision of long-term MORTGAGE loans used to purchase property. In recent years, many of the larger UK building societies have moved into the estate agency business. Additionally, they have entered into arrangements with other financial institutions that have enabled them to provide their depositors with limited banking facilities (the use of cheque books and credit cards, for instance) and other financial services, a development that has been given added impetus by the BUILDING SOCIETIES ACT 1986.

Most notably, major building societies, such as the Abbey National and Halifax, have taken advantage of changes introduced by the BUILDING SOCIETIES ACT 1986 and the FINANCIAL SERVICES ACT 1986 and have converted themselves into public JOINT-STOCK COMPANIES, setting themselves up as ‘financial supermarkets’ offering customers a banking service and a wide range of personal financial products, including insurance, personal pensions, unit trusts, individual savings accounts (ISAs), etc. This development has introduced a powerful new competitive impetus into the financial services industry, breaking down traditional ‘demarcation’ boundaries in respect of ‘who does what’, allowing former building societies to ‘cross-sell’ these services and products in competition with traditional providers such as the COMMERCIAL BANKS, INSURANCE COMPANIES, UNIT TRUSTS, etc.

Building society deposits constitute an important source of liquidity in the economy and count as ‘broad money’ in the specification of the MONEY SUPPLY. See FINANCIAL SYSTEM.

References in periodicals archive ?
Alun Williams, chief executive officer of Swansea Building Society, said: "Richard is a highly respected and experienced financial services manager who will bring a wealth of experience and knowledge to the society.
Chris Pilling, chief executive of Yorkshire Building Society, said: "Our branch network always has been, and remains, at the heart of our business, providing the face-to-face service that many of our members prefer.
Iain Cornish, chief executive of Yorkshire Building Society, said: "Re-mutualisation of Northern Rock provides a real opportunity to create a more vibrant and sustainable financial sector.
David Stewart, Chief Executive of Coventry Building Society, said: "Coventry's performance over the last three years has demonstrated the strength of our traditional building society model.
The West Midlands-based mutual - the eighth biggest building society in the UK - could be broken up, with its savings arm transferred on to another building society and its assets taken over by the Bank of England.
The key difference between a bank and a building society is banks are driven to greater profits and riskier deals by greedy shareholders.
And only one, the Dudley Building Society, was willing to accept more than 10 cash bags from adult customers -but at a price.
Business information systems, management systems and security solutions supplier Agresso has been awarded a contract from the Dunfermline Building Society in the UK for the provision of its AGRESSO Business World solution.
More than 1million members of Britain's second biggest building society will get windfalls of up to pounds 500 each under a Members' Loyalty Bonus Scheme.
institutional sources of mortgage loans was the building society,
QlikTech, the world's leading provider of in-memory reporting and analysis solutions, today announced that Yorkshire Building Society Group (YBS) has implemented QlikView, QlikTech's innovative business intelligence tool.
The move will see six Barnsley Building Society branches close and the rest rebranded by July.