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 ?
The building society joins NewcastleAirport, Northumbrian Water, Newcastle College, rail company Northern, Stagecoach and Newcastle University in supporting Invest in the North East.
Having worked in financial services for more than 20 years, Mr Miles brings extensive industry experience to Swansea Building Society.
Moody's maintained the outlook for Royal Bank of Scotland, Skipton Building Society, West Bromwich Building Society and Yorkshire Building Society, citing "firm-specific credit considerations" that outweighed the referendum's impact.
"The course this year was gruelling, but could not defeat our Leeds Building Society warriors, who travelled from Leeds and the North East to take part," said contact centre manager Ali Devine.
As Northern Ireland's only local building society we know what our members want us to provide and we deliver savings and mortgage products to meet this need.
The group said the Barnsley Building Society and Chelsea Building Society names will disappear from the high street, with those branches rebranded as the Yorkshire Building Society.
The building society has also announced a bigger community fund, pledging to share their funds, people, resources, physical spaces and skills to help the communities they serve.
Two new bonds from Yorkshire Building Society promise to do just that, as it joins with Yorkshire Air Ambulance (YAA) to launch two new Supporter Bonds.
UK's third-largest mortgage lender Coventry Building Society (LON:CVB) is negotiating over a potential acquisition of competitor Norwich & Peterborough Building Society (N&P), the Mail on Sunday said without citing any sources.
COVENTRY Building Society has announced it has agreed merger terms with Stroud & Swindon Building Society, boosting membership by 300,000.
Summary: The West Bromwich Building Society is poised for a rescue deal within days, according to reports.
But anyone who has their cash in a building society rather than a bank knows their institution won't collapse because of stock market speculation.

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