BSA welcomes the mergers of Nationwide with Derbyshire and Cheshire Building Societies

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Monday, 08, Sep 2008 12:00

Commenting on today’s announcement that the Derbyshire and Cheshire Building Societies are to merge with the Nationwide Building Society, Adrian Coles, Director-General of the Building Societies Association,

said:

“The BSA welcomes the mergers of Nationwide Building Society with Derbyshire and Cheshire Building Societies announced today. The mergers will serve to further enhance the strength and stability of the sector.

“There have always been mergers between building societies and it is no surprise to see mergers announced in the current difficult market conditions. Today’s announcement represents a prudent reaction by two building societies to the particular positions in which they find themselves, and the continuation of a long tradition in which building societies solve any potential problems emerging within the sector.

Overall, the building society sector is coping well with the current difficult conditions in the housing market.

“Building societies have always seen maintaining the safety of their investors’ funds as their paramount duty. No member of a building society has lost any of their investment since at least 1945, and probably for a long time before that. I am very confident that building societies will maintain this record for many years into the future.”

~ Ends ~

Notes to Editors:

1. Nationwide is 25 times the size of Derbyshire and 36 times the size of Cheshire. Asset size of the three societies:

Nationwide (1st) - £179 billion

Derbyshire (9th) - £7 billion

Cheshire (11th) - £5 billion

2. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK.

Building societies also account for about 38% of all cash ISA balances.

Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 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

CONTACT: Rachel Le Brocq

DIRECT LINE: 020 7520 5905

NIGHT/WEEKEND: 07773 489644

EMAIL: rachel.lebrocq@bsa.org.uk