Building Societies Association
Media Centre
Press release
ROCK BUSINESS PLAN – UNFAIR COMPETITION STILL A WORRY
Contact: Rachel Le Brocq
Date: 18 Mar 2008 		Print page  |   Email 

Commenting on the publication today of the provisional business plan by Northern Rock bank, Adrian Coles, Director-General of the Building Societies Association, said:

“This does little to allay our fears of unfair competition from the taxpayer-funded bank.  Northern Rock has confirmed that the bank’s market share of retail deposits will be increased over the next three or four years and we have only Northern Rock’s guarantee that they will not compete on an unfair basis – this is not good enough and we will look for much more detail on this in the finalised business plan later this month.  Taxpayers deserve to see as much detail as possible about the plans of the bank that they own.

“Northern Rock has clearly been sensitive to the distortions it has caused to the Danish markets, but it, and the Government, must also take steps to minimise the much greater potential distortion to the UK savings markets as a matter of urgency.  It is unacceptable for Northern Rock to build market share via a combination of artificially high interest rates and Government guarantees to savers.”

~Ends~

CONTACT:  Rachel Le Brocq
DIRECT LINE:  020 7520 5905
NIGHT/WEEKEND:  07773 489644
EMAIL:  rachel.lebrocq@bsa.org.uk


Notes

  1. The announcement from Northern Rock bank (18/3/08) can be viewed here http://companyinfo.northernrock.co.uk/corporateRelations/news/article.asp?newsID=166

     

  2. 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.

     

  3. Photographs of  Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk