The results of yesterday's referendum are in, and the UK has voted to leave the European Union.
On this historic day, BSA Chairman, Dick Jenkins comments:
“The UK population has made its decision and it is important that the focus returns quickly to business as usual. The process of leaving the EU will be a relatively slow one, taking around two years.
"Today and for the foreseeable future nothing changes in the building society sector: Mortgages are available and retail savings are safe, exactly as they were before the Referendum.
“The greatest concern for the UK economy and something that affects financial market sentiment and ultimately interest rates is uncertainty.
"The primary job for the Government and politicians generally is to unite to ensure that they do everything possible to counter this and set the tone and framework for the UK Economy to thrive.”
- Building societies are well capitalised both in absolute terms and in comparison with the UK’s big five banks. The average building society CET1 ratio is 18.4% compared to 12.5% for the big banks (weighted data from 2015/16 financial year for building societies 2015 financial year results for the big five banks). Societies also have strong levels of liquidity.
- The Building Societies Association (BSA) represents all 44 UK building societies which between them have around 25 million members. Building societies have total assets of over £345 billion and, together with their subsidiaries, hold residential mortgages of over £270 billion, 21% of the total outstanding in the UK. They hold over £250 billion of retail deposits, accounting for 18% of all such deposits in the UK. Building societies account for about 31% of all cash ISA balances. They employ approximately 40,000 full and part-time staff and operate through approximately 1,550 branches.
- Dick Jenkins is also Chief Executive of the Bath Building Society.
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