|
Media Centre
Savings inflows to building societies last month were a new March record at £1.26 billion. This compares with inflows of £0.7billion in March 2007, and represents a 70% increase. The March figure is the latest in eight months of outstandingly high savings figures for societies, and further demonstrates the resilience of the building society business model in the current financial services market. With building societies receiving some 70% of their funding from the retail market, their continuing strength in attracting savings has meant that the problems in the wholesale markets have had less of an impact on building societies than on some competitors who are more dependent on wholesale funding. Commenting on the figures, Adrian Coles, Director-General of the BSA said:- “Against the current uncertain economic climate, building societies are seen as tried and tested, traditional and trusted. Together with the competitive rates of interest they offer, these attributes mean societies continue to attract record levels of savings. Building societies have never relied on wholesale funding to the same extent as many other lenders, and these substantial saving inflows indicate that building societies are less exposed to the restricted availability of wholesale funds than other lenders.” Mr. Coles continued:- “Lending at building societies was down year on year. This is partly due to building societies withdrawing products and increasing rates on new lending so that they do not become overly competitive. For example, as other lenders withdrew from the market, some building societies found themselves offering best buy deals and were inundated with applications. They too were then forced to limit their lending, not because of funding difficulties, but in order to preserve the high levels of service that distinguish building societies from other providers. Furthermore, this may also be due to a greater level of uncertainty in the housing market causing prospective buyers to hold back until the direction of house prices becomes a little clearer.” Building Society Statistics March 2008
Lending table ~Ends~ CONTACT: Neil Johnson Notes
The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of just under £350 billion and, together with their subsidiaries, hold residential mortgages of £245 billion, more than 20% of the total outstanding in the UK. Societies hold about £215 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for over 38% of all cash ISA balances. Building societies employ over 50,000 full and part-time staff and operate through more than 2,100 branches.
Photographs of Adrian Coles are available from the BSA press office, from the Association’s website at www.bsa.org.uk or from Headlinemoney www.headlinemoney.co.uk A list of all building societies can be found on the BSA website at http://www.bsa.org.uk/aboutus/buildsocmember.htm and demutualised institutions at http://www.bsa.org.uk/consumer/factsheets/100010.htm |
Latest Press Releases
SAVINGS REMAIN HIGH
MODEST PROPERTY PRICE FALL EXPECTED
IS NOW A GOOD TIME TO BUY?
BSA TO EXPAND MORTGAGE SERVICE
Society Matters
Spring Edition
Winter Edition
Autumn Edition
Newsbite
Building society statistics 2007
BSA Annual Conference round-up
BSA responds to financial stability and depositor protection consultation
Budget round-up
BSA argues for safeguards against unfair competition from Northern Rock
House Prices in 2008
|
- You are here
- >
- Home
- >
- Media Centre
- >
- Press Release Index
- >
- THE FLIGHT TO QUALITY
© 2006 The Building Societies Association (BSA) |
|