Nationwide closes yet more branches
The so-called "secretive closure" of Nationwide building society branches across the UK seems set to continue with more closures announced this week. Research by the Daily Mail indicates that 15 Nationwide branches have been closed over the past 12 months although there has been no official announcement to confirm this. It would appear that the UK mutual sector is under pressure, as are all financial sectors in the UK, to reduce costs and increase profitability.
The mutual sector has for many years been the backbone of the UK financial sector offering savers and borrowers exposure to the underlying profitability of the operation for the good of all customers. However, the last few months have seen problems at the Dunfermline building society, the old Bradford & Bingley as well as the West Bromwich building society. Indeed it was the West Bromwich building society which took the unprecedented step of converting some of the company's debt into new investment instruments thereby bringing in third-party investors for the first time ever.
While there are still significant differences between the traditional banking sector and the mutual societies there is no doubt that these differences are far less than they were a decade ago. The maximisation of profitability in the mutual sector is set to see further changes in the UK in years to come and ultimately it may be difficult to tell the traditional finance sector and the mutual sector apart.
Share this..
Related stories
Bank tracking down 'dormant account' holders
Around 7,000 people have been identified by HSBC as holders of lost or forgotten-about accounts.The bank said that these customers had not touched their money in more than 15 years - and would now be contacted in order to reunite them with the funds.According to HSBC, 5,000 letters are to go out to dormant account holders immediately - with efforts being made to track down the further 2,000 curren...
Read MoreFTSE 100 bounces on Chinese stimulus package hopes
After a disastrous few days the FTSE 100 index rebounded 3.8% today as traders became aware of the potential for a new Chinese stimulus package which could, along with the US stimulus package, stop the sharp decline in the worldwide economy. Stock markets around the world rallied although there is some scepticism in the Far East as to whether the Chinese authorities are ready to announce a massive...
Read MoreWhat options do the UK government have to refloat the economy?
As we see the introduction of the bank rescue package part two and suggestions of quantitative easing via the Bank of England's operations there is serious concern about the medium to longer term impact on the UK economy. Quite literally the UK government is running out of money and ideas to get the UK market moving again at a time when confidence is low and the banking community seems hell bent o...
Read MoreLand Securities injects realism into the UK property market
After announcing a 34% reduction in the value of its property portfolio, Land Securities has shocked both the UK stock market and the UK property sector today. The company has heavy exposure to both the retail sector and the office space sector across the UK and today's figures indicate the situation may be worse than many had anticipated. Overall the company announced losses of £4.7 billion agai...
Read MoreUK savings ratio highest for six years
It has been revealed that the average UK home is now putting aside 5.6% of monthly income for savings, against just 1.7% at this time last year. While on the surface this is obviously a very positive move, it does appear that many are saving for the future because they are unsure about job security, future income and the cost of living. On the plus side, the amount of debt being taken on by UK con...
Read More