Building societies at the heart of their communities

A report published by the BSA reveals the breadth of building societies’ community and their support for local causes with donations of money, staff time and expertise.

The report shows:

- Each society donates, on average, 790 hours of staff time to community activity each year, equivalent to almost £25,000

- Nearly £8 million per year is given by building societies to good causes

- Members frequently have a say in which causes are supported

- Financial education is an area to which building societies are directing a growing share of their efforts

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Northern Rock’s return to the mortgage market

Commenting on the announcement that Northern Rock will offer up to £14 billion of new mortgage lending over next two years, Adrian Coles, BSA Director-General, said:

“Overall this is helpful and a move in the right direction; the basic problem in the mortgage market has been lack of funding."

"We would expect Northern Rock to concentrate on those parts of the market where the private sector is reluctant to lend at the moment –  first time buyers requiring high LTV loans, for example.  If Northern Rock lends in competition with private sector lenders they should not squeeze the margins of those that do not enjoy, and have not required, state support"

"We have some concern about where the funding is coming from – Northern Rock must not distort the savings market.  Northern Rock’s savings balances grew by 87% in 2008 compared to 2007, while total UK retail balances grew by just 5%.”

BSA responds to FSA consultation on regulating retail banking conduct of business

Responding to the FSA’s consultation on regulating retail banking conduct of business, the Association has stated its support for voluntary self-regulation through the Banking Code and is keen for this to continue in the future.  If statutory regulation were to be pursued, however, we believe that ALL retail banking, including credit, should move to the FSA.  It would be crucial that whatever replaced the Code was capable, in practice, of ensuring even better and more effective regulation.

The BSA believes the Banking Code has worked well and, unlike some statutory regulatory regimes, can be quickly amended to take account of emerging issues or concerns.

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Early Day Motion on building societies and FSCS levy continues to gain support from MPs

An Early Day Motion (EDM) noting the disproportionate impact on building societies of the Financial Services Compensation Scheme (FSCS) levy resulting from the failure of banks, continues to gain momentum in Parliament.  The EDM now has the support of over 145 MPs – up from 100 at the end of January.

Also on the same subject, a petition on the Number 10 website - the official site of the Prime Minister’s Office – has gained the support of over 1,200 members of the public.

To view EDM 426 and the petition on the Number 10 website click here.

Societies scoop awards

At The Card Awards 2009, Nationwide Building Society took the award for Most Responsible Credit Card Lending Practices, whilst Newcastle Building Society scooped Best Prepaid Card Marketing Campaign of the Year and Best Card Cross-Selling Programme of the Year.

Elsewhere, The Hanley Economic Building Society was awarded Best Companies Accreditation 2009.  Best Companies is the name behind The Sunday Times’ 'Best Companies to Work For'.