The Finance Owl

Banks – Loans – Mortgages – Money

UK Building Societies – Who’s Laughing Now?

Posted by admin July - 3 - 2009 - Friday

UK building societies, such as Nationwide Building Society, although struggling appear to have retained more consumer confidence than the high street UK banks.  Much of this UK consumer confidence appears to have come from the fact that much of the bad press has been directed at banks and not at building societies.

Until recently, namely before the credit crisis, the UK building societies had been struggling enormously in what was the tough UK mortgage market. The UK building societies had been viewed by many in the press as boring and were under significant pressures from their owners, namely the specified society account holders, to go public. Much of this pressure on UK building societies was driven by account holders who were out to make a quick buck at the expense of ownership. Luckily, it appears, that many of these UK building societies successfully resisted the pressure from greedy account holders.

The press often plagued those UK building societies who resisted converting into publicly held shareholder companies with accusations of “boring” and “being stuck in the past”.  The pressure to effectively become UK high street banks was only resisted by a proportion of the UK building societies.

Now… who is laughing now?

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