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Why choose Bath Building Society |
| FINANCIAL STRENGTH (November 2008) There are currently 59 building societies in the UK ranging from the Nationwide (with assets in excess of £138bn) to the Century (with assets of just over £22m). Bath Building Society stands at position 45 in the assets table with total assets in excess of £210m. Although the Society is relatively small in comparison to the high street banks and larger building societies, Bath Building Society has a capital strength that is over 135% of its statutory minimum (as set by the FSA). The FSA's capital ratio is set to maintain the solvency of deposit takers such as banks and building societies. The Society is directly regulated by the FSA and it holds FSA permissions to take deposits and give advice on regulated mortgages. It is regulated under exactly the same compliance regime as larger societies. Its external auditors are Deloitte & Touche LLP and it outsources its internal audit requirements to Mutual One Limited, a subsidiary company of the Skipton Building Society. |
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| It is a feature of the building society sector that only the top 10 or so societies have formal credit ratings. As such Bath Building Society does not have such a rating. Under the FSA's regulatory regime, it does however have to hold a significant percentage of the total monies invested by its customers as liquid cash at all times. For example, it is currently managing over £60m of cash and other easily realisable liquid assets within its treasury department. This equates to about 30% of all of its share and deposit investments. As part of the regulatory regime covering liquidity risk management, the Society also has to hold substantial lines of credit that it can call on in the event of high demands on short-term liquidity. The Society is predominantly funded by private individuals who save with the Society through traditional retail channels, such as via its branch and agency network. It has very low exposure to wholesale money markets, with less than 2% of its shares and deposits being sourced through this channel. The Society continues to have a level of arrears well below the industry average. We continue to monitor arrears closely and work with borrowers on a one-by-one basis to find arrears solutions. As is common with most deposit takers, all of the Society’s share and deposit investors are protected by the Financial Services Compensation Scheme under the standard rules of that scheme. In summary, Bath Building Society is a well regulated, well managed and well capitalised mutual organisation that has provided a secure home for its members' savings for over 100 years. Related news articles  You may find reading a news article titled 'Anxious Savers Turn To Bath Building Society' of interest, to access this article please click hereClick here for our 'Up close and personal' article |
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