The Skipton building society builds a significant war chest
It has been revealed that the Skipton building society has a war chest of £400 million in place as some of the smaller societies in the sector continue to struggle. The U.K.'s sixth largest building society, with a £14 billion loan book and over 700,000 members, is also looking to dispose of three more non-core assets to raise yet more funding for the future.
It does seem a little coincidental that the Skipton building society is building up this significant war chest at a time when the Financial Services Authority (FSA) is expressing concerns about the smaller operators in the sector. Whether the Skipton, or any other larger building societies, have been in talks with the FSA regarding potential rescue packages in the future is unclear but what is clear is the fact that even in the event of some building societies struggling to survive it looks as though the "big players" will ride to the rescue.
This move by the Skipton building society will be well received by the FSA and savers in the sector, who are beginning to show signs of concern regarding some of their savings. However, in order to avert any potential rumour mongering we do need to see the FSA and building societies alike make an official statement regarding the sector and the current situation.
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