Abstracts » Business

Societies sit tight

Article Abstract:

UK building societies oppose paying dividends to members. This move was proposed by the Building Societies Commission, a body regulating building socities. The UK government argues that they should provide better information for their membership. Better interest rates and loyalty bonuses have been proposed by some building societies. Building societies remaining as mutual institutions could face divided pressures of seeking to please their membership in addition to pleasing global stock markets.

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Building societies: mutual gains

Article Abstract:

Consolidation may occur among UK building societies as larger mutuals offer lower mortgage rates and higher savings rates. This may leave smaller building societies vulnerable. Some buildings societies may lose their mutual status and this could bring gains for savers. The UK government plans to liberalise rules governing building societies and change regulations on directors' accountability to building society members. This could affect acquisitions in the sector.

Mortgage banks

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Building societies join the international set

Article Abstract:

UK building societies are developing offshore services and the products offered vary greatly according to the building society involved. They tend to offer higher rates of interest than banks. UK building societies are undergoing a restructuring process and some are becoming banks or are involved in mergers. A few are clearly committed to staying as building societies and they include Britannia, which is one of the biggest in the UK.

Foreign banks

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