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A building society is a
financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...
owned by its members as a
mutual organization A mutual organization, or mutual society is an organization (which is often, but not always, a company or business) based on the principle of mutuality and governed by private law. Unlike a true cooperative, members usually do not contribute ...
. Building societies offer
banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
and related
financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...
, especially savings and mortgage lending. Building societies exist in the United Kingdom, Australia and New Zealand, and used to exist in Ireland and several Commonwealth countries. They are similar to
credit union A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provis ...
s in organisation, though few enforce a common bond. However, rather than promoting thrift and offering unsecured and business loans, the purpose of a building society is to provide home mortgages to members. Borrowers and depositors are society members, setting policy and appointing directors on a one-member, one-vote basis. Building societies often provide other retail banking services, such as current accounts, credit cards and personal loans. The term "building society" first arose in the 19th century in
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It ...
from cooperative savings groups. In the United Kingdom, building societies actively compete with banks for most consumer banking services, especially mortgage lending and
savings account A savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn. Traditionally, transa ...
s, and regulations permit up to half of their lending to be funded by debt to non-members, allowing societies to access wholesale bond and money markets to fund mortgages. The world's largest building society is Britain's
Nationwide Building Society Nationwide Building Society is a British mutual financial institution, the seventh largest cooperative financial institution and the largest building society in the world with over 16 million members. Its headquarters are in Swindon, Englan ...
. Further, in Australia, building societies also compete with retail banks and offer the full range of banking services to consumers.


History in the United Kingdom

Building societies as an institution began in late-18th century
Birmingham Birmingham ( ) is a city and metropolitan borough in the metropolitan county of West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1.145 million in the city proper, 2.92 million in the We ...
– a town which was undergoing rapid economic and physical expansion driven by a multiplicity of small metalworking firms, whose many highly skilled and prosperous owners readily invested in property. Many of the early building societies were based in
tavern A tavern is a place of business where people gather to drink alcoholic beverages and be served food such as different types of roast meats and cheese, and (mostly historically) where travelers would receive lodging. An inn is a tavern t ...
s or
coffeehouse A coffeehouse, coffee shop, or café is an establishment that primarily serves coffee of various types, notably espresso, latte, and cappuccino. Some coffeehouses may serve cold drinks, such as iced coffee and iced tea, as well as other non-ca ...
s, which had become the focus for a network of clubs and societies for co-operation and the exchange of ideas among Birmingham's highly active citizenry as part of the movement known as the
Midlands Enlightenment The Midlands Enlightenment, also known as the West Midlands Enlightenment or the Birmingham Enlightenment, was a scientific, economic, political, cultural and legal manifestation of the Age of Enlightenment that developed in Birmingham and the wide ...
. The first building society to be established was
Ketley's Building Society Ketley's Building Society, founded in Birmingham, England, in 1775, was the world's first building society. The society was formed by Richard Ketley, the landlord at the Golden Cross inn at 60 Snow Hill. Taverns and coffeehouses were important me ...
, founded by Richard Ketley, the landlord of the ''Golden Cross'' inn, in 1775. Members of Ketley's society paid a monthly subscription to a central pool of funds which was used to finance the building of houses for members, which in turn acted as
collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...
to attract further funding to the society, enabling further construction. By 1781 three more societies had been established in Birmingham, with a fourth in the nearby town of
Dudley Dudley is a large market town and administrative centre in the county of West Midlands, England, southeast of Wolverhampton and northwest of Birmingham. Historically an exclave of Worcestershire, the town is the administrative centre of the ...
; and 19 more formed in Birmingham between 1782 and 1795. The first outside the
English Midlands The Midlands (also referred to as Central England) are a part of England that broadly correspond to the Kingdom of Mercia of the Early Middle Ages, bordered by Wales, Northern England and Southern England. The Midlands were important in the ...
was established in
Leeds Leeds () is a city and the administrative centre of the City of Leeds district in West Yorkshire, England. It is built around the River Aire and is in the eastern foothills of the Pennines. It is also the third-largest settlement (by popul ...
in 1785. Most of the original societies were fully '' terminating'', where they would be dissolved when all members had a house: the last of them, First Salisbury and District Perfect Thrift Building Society, was wound up in March 1980. In the 1830s and 1840s a new development took place with the ''permanent building society'', where the society continued on a rolling basis, continually taking in new members as earlier ones completed purchases, such as Leek United Building Society. The main legislative framework for the building society was the
Building Societies Act 1874 A building, or edifice, is an enclosed structure with a roof and walls standing more or less permanently in one place, such as a house or factory (although there's also portable buildings). Buildings come in a variety of sizes, shapes, and func ...
, with subsequent amending legislation in 1894, 1939 (see
Coney Hall Coney Hall is an area of Greater London, within the London Borough of Bromley, Greater London and formerly in the historic county of Kent. It is located south of Hayes, west of Keston, north of Nash, and east of West Wickham. The Prime Meridian ...
), and 1960. In their heyday, there were hundreds of building societies: just about every town in the country had a building society named after that town. Over succeeding decades the number of societies has decreased, as various societies merged to form larger ones, often renaming in the process, and other societies opted for
demutualisation Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, membe ...
followed by – in the great majority of cases – eventual takeover by a listed bank. Most of the existing larger building societies are the end result of the mergers of many smaller societies. All building societies in the UK are members of the
Building Societies Association The Building Societies Association (BSA) was originally established in 1869. It is the voice for all 43 UK building societies as well as six large credit unions.  Together these organisations serve around 25 million customers up and down the ...
. At the start of 2008, there were 59 building societies in the UK, with total assets exceeding £360 billion. The number of societies in the UK fell by four during 2008 due to a series of mergers brought about, to a large extent, by the consequences of the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
. With three further mergers in each of 2009 and 2010, and a demutualisation and a merger in 2011, as of 2020 there are now 44 building societies.


Demutualisation

In the 1980s, changes to British banking laws allowed building societies to offer banking services equivalent to normal banks. The management of a number of societies still felt that they were unable to compete with the banks, and a new
Building Societies Act Building Societies Act is a stock short title used in both Ireland and the United Kingdom for legislation relating to building societies. List Ireland *The Building Societies (Amendment) Act 2006 *The Building Societies Act 1989 *The Buildi ...
was passed in 1986 in response to their concerns. This permitted societies to '
demutualise Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, membe ...
'. If more than 75% of members voted in favour, the building society would then become a
limited company In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. In a company limited by shares, the li ...
like any other. Members' mutual rights were exchanged for shares in this new company. A number of the larger societies made such proposals to their members and all were accepted. Some listed on the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
, while others were acquired by larger financial groups. The process began with the demutualisation of the Abbey National Building Society in 1989. Then, from 1995 to late 1999, eight societies demutualised accounting for two-thirds of building societies assets as at 1994. Five of these societies became joint stock banks (plc), one merged with another and the other four were taken over by plcs (in two cases after the mutual had previously converted to a plc). As mentions, demutualisation moves succeeded immediately because neither Conservative nor Labour party UK governments created a framework which put obstacles in the way of demutualisation. Political acquiescence in demutualisation was clearest in the case of the position on '
carpetbaggers In the history of the United States, carpetbagger is a largely historical term used by Southerners to describe opportunistic Northerners who came to the Southern states after the American Civil War, who were perceived to be exploiting the ...
', that is those who joined societies by lodging minimum amounts of £100 or so in the hope of profiting from a distribution of surplus after demutualisation. The deregulating
Building Societies Act 1986 The Building Societies Act 1986 is an Act of Parliament of the United Kingdom governing building societies ( mutually-owned mortgage-lending institutions). It removed certain restrictions on the range of services they could offer, so that they ...
contained an anti-carpetbagger provision in the form of a two-year rule. This prescribed a qualifying period of two years before savers could participate in a residual claim. But, before the 1989 Abbey National Building Society demutualisation, the courts found against the two-year rule after legal action brought by Abbey National itself to circumvent the intent of the legislators. After this the legislation did prevent a cash distribution to members of less than two years standing, but the same result was obtained by permitting the issue of 'free' shares in the acquiring plc, saleable for cash. The Thatcher Conservative government declined to introduce amending legislation to make good the defect in the 'two-year rule'.


1980s and 1990s

Building societies, like mutual life insurers, arose as people clubbed together to address a common need interest; in the case of the building societies, this was housing and members were originally both savers and borrowers. But it very quickly became clear that 'outsider' savers were needed whose motive was profit through interest on deposits. Thus permanent building societies quickly became mortgage banks and in such institutions there always existed a conflict of interest between borrowers and savers. It was the task of the movement to reconcile that conflict of interest so as to enable savers to conclude that their interests and those of borrowers were to some extent complementary rather than conflictive. Conflict of interest between savers and borrowers was never fully reconciled in the building societies but upon deregulation that reconciliation became something of a lost cause. The management of building societies apparently could expend considerable time and resources (which belonged the organisation) planning their effective capture—of as much of the assets as they could. If so, this is arguably insider dealing on a grand scale with the benefit of inside specialist knowledge of the business and resources of the firm not shared with outsiders like politicians and members (and, perhaps, regulators). Once the opportunity to claim was presented by management the savers in particular could be relied upon to seize it. There were sufficient hard-up borrowers to take the inducement offered them by management (in spite of few simple sums sufficing to demonstrate that they were probably going to end up effectively paying back the inducement). Management promoting demutualisation also thereby met managerial objectives because the end of mutuality brought joint stock company (plc) style remuneration committee pay standards and share options. Share options for management of converting societies appear to be a powerful factor in management calculation. refers to this in the following terms: Instead of deploying their margin advantage as a defence of mutuality, around 1980 building societies began setting mortgage rates with reference to market clearing levels. In sum they began behaving more like banks, seeking to maximise profit instead of the advantages of a mutual organisation. Thus, according to the Bank of England's : As also observe: draws a rather more direct and cynical conclusion: Some of these managements ended up in dispute with their own members. Of the first major conversion of the Abbey in 1989, observed: In the end, after a number of large demutualisations, and pressure from carpetbaggers moving from one building society to another to cream off the windfalls, most of the societies whose management wished to keep them mutual modified their rules of membership in the late 1990s. The method usually adopted were membership rules to ensure that anyone newly joining a society would, for the first few years, be unable to get any profit out of a demutualisation. With the chance of a quick profit removed, the wave of demutualisations came to an end in 2000. One academic study found that demutualised societies' pricing behaviour on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates.


2000s and 2010s

The
Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (sometimes referred to as the Butterfill Act) is an Act of the Parliament of the United Kingdom. The Act gives building societies greater powers to merge with other com ...
, known as the Butterfill Act, was passed in 2007 giving building societies greater powers to merge with other companies. These powers have been used by the
Britannia Britannia () is the national personification of Britain as a helmeted female warrior holding a trident and shield. An image first used in classical antiquity, the Latin ''Britannia'' was the name variously applied to the British Isles, Grea ...
in 2009 and Kent Reliance in 2011 leading to their demutualisation. Prior to 31 December 2010, deposits with building societies of up to £50,000 per individual, per institution, were normally protected by the Financial Services Compensation Scheme (FSCS), but Nationwide and Yorkshire building societies negotiated a temporary change to the terms of the FSCS to protect members of the societies they acquired in late 2008/early 2009. The amended terms allowed former members of multiple societies which merge into one to maintain multiple entitlements to FSCS protection until 30 September 2009 (later extended to 30 December 2010), so (for example) a member with £50,000 in each of Nationwide, Cheshire and Derbyshire at the time of the respective mergers would retain £150,000 of FSCS protection for their funds in the merged Nationwide. On 31 December 2010 the general FSCS limit for retail deposits was increased to £85,000 for banks and building societies and the transitional arrangements in respect of building society mergers came to an end.


List of building societies


United Kingdom


Current

(Total group assets of building societies) ''(data from last available annual reports as of December 2016)'' Source:
Building Societies Association The Building Societies Association (BSA) was originally established in 1869. It is the voice for all 43 UK building societies as well as six large credit unions.  Together these organisations serve around 25 million customers up and down the ...
updated for subsequent mergers


Demutualised

Ten building societies of the United Kingdom demutualised between 1989 and 2000, either becoming a bank or being acquired by a larger bank. By 2008, every building society that floated on the stock market in the wave of demutualisations of the 1980s and 1990s had either been sold to a conventional bank, or been
nationalised Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to p ...
.


No longer exist

The following is an incomplete list of building societies in the United Kingdom that no longer exist independently, since they either merged with or were taken over by other organisations. They may still have an active presence on the high street (or online) as a trading name or as a distinct brand. This is typically because brands will often build up specific reputations and attract certain clientele, and this can continue to be marketed successfully.


Australia

In Australia, building societies evolved along British lines. Following the end of World War II, the terminating model was revived to fund returning servicemen's need for new houses. Hundreds were created with government seed capital, whereby the capital was returned to the government and the terminating societies retained the interest accumulated. Once all the seed funds were loaned, each terminating society could reapply for more seed capital to the point where they could re-lend their own funds and thus became a permanent society. Terminating loans were still available and used inside the permanent businesses by staff up until the 1980s because their existence was not widely known after the early 1960s. Because of strict regulations on banks, building societies flourished until the deregulation of the Australian financial industry in the 1980s. Eventually many of the smaller building societies disappeared, while some of the largest (such as St. George) officially attained the status of banks. Recent conversions have included Heritage Bank which converted from building society to bank in 2011,
Hume Hume most commonly refers to: * David Hume (1711–1776), Scottish philosopher Hume may also refer to: People * Hume (surname) * Hume (given name) * James Hume Nisbet (1849–1923), Scottish-born novelist and artist In fiction * Hume, ...
in 2014, while Wide Bay Building Society became Auswide Bank and IMB followed suit in 2015, and Greater Building Society became
Greater Bank Greater Bank is an Australian customer-owned bank and mutual financial institution with headquarters in Hamilton, New South Wales. The bank was previously known as the Greater Building Society, or simply "The Greater”, and provides services to ...
in 2016. Building societies converting to banks are no longer required to demutualise. A particular difference between Australian building societies and those elsewhere, is that Australian building societies are required to incorporate as
limited companies In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. In a company limited by shares, the liab ...
. Current building societies are * Bass & Equitable Building Society (Tasmania) * Maitland Mutual Building Society (Maitland) *
Newcastle Permanent Building Society Newcastle Permanent Building Society is an Australian building society with its head office located in Newcastle, New South Wales, Australia, and provides services in New South Wales. It was founded on 2 February 1903 as a Starr-Bowkett Socie ...
(Newcastle)


Eswatini

The Building Societies Act of 1962 allowed for the registration of building societies in Eswatini. For a long time the country only had one building society. A second was registered in late 2019. *Swaziland Building Society: Registered in the 1960s, this is the first and oldest building society in Eswatini. It has branches in almost every town and city within the Kingdom and has been known to be conservative. There have been many rumours of this institution wishing to demutualise to the extent that an amendment to the Building Societies Act was passed in 2019 permitting building societies to demutualise and apply for banking licences. *Status Capital Building Society: Status Capital Building Society was registered as the country's second building society and granted a licence in 2019 by the Financial Services Regulatory Authority after approval and recommendation from the Minister of Finance.


Ireland

The
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 counties of the island of Ireland. The capital and largest city is Dublin, on the eastern side of the island. ...
had around 40 building societies at the mid-20th century peak. Many of these were very small and, as the Irish commercial banks began to originate residential mortgages, the small building societies ceased to be competitive. Most merged or dissolved or, in the case of First Active plc, converted into conventional banks. The last remaining building societies,
EBS Building Society EBS d.a.c. is a small financial institution in Ireland registered as a designated activity company. In June 2022, the Irish government's Central Bank of Ireland reprimanded and fined EBS d.a.c. trading as EBS €13.4m for a series of significa ...
and
Irish Nationwide Building Society Irish Nationwide Building Society was a financial institution in Ireland from 1873 to 2011. One of the country's oldest financial institutions, it was originally called the Irish Industrial Building Society; it changed its name in 1975 when it had ...
, demutualised and were transferred or acquired into Bank subsidiaries in 2011 following the effects of the Irish financial crisis. Leeds Building Society Ireland and
Nationwide UK (Ireland) The UK-based Nationwide Building Society had a presence in Ireland since 24 March 2009, offering deposit accounts only. Accounts were available to Irish residents only and did not confer membership of the UK building society. Nationwide UK (Irela ...
were Irish branches of a building societies based in the United Kingdom; both have since ceased all Irish operations.


Society closures

* Ballygall Building Society, 1977 * City and Provincial Building Society, 1978 * Dublin Model Building Society, 1984 * Dublin Savings Building Society, 1977 * Four Provinces Building Society, 1978 * Independent Building Society, 1977 * Irish Savings Building Society, 1984 * National Provincial Building Society, 1977 * Progressive Building Society, 1977 * West of Ireland Building Society, 1977


Jamaica

In
Jamaica Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of Hispa ...
, three building societies compete with commercial banks and credit unions for most consumer financial services: *Jamaica National Building Society *Victoria Mutual Building Society *Scotia Jamaica Building Society


New Zealand


Regulation

In
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...
, building societies are registered with the Registrar of Building Societies under the Building Societies Act 1965. Registration as a building society is merely a process of establishing the entity as a corporation. It is largely a formality, and easily achieved, as the capital requirement is minimal (20 members must be issued shares of not less than NZ$1,000 each, for a total minimum foundation share capital of NZ$200,000). As regards prudential supervision, a divide exists between building societies that operate in New Zealand, on the one hand, and those that (although formally registered in New Zealand) operate offshore: * Building societies that accept deposits from members of the public in New Zealand are regulated as "non-bank deposit takers" under the Non-bank Deposit Takers Act 2013. Such building societies must (unless they qualify for a particular exemption) comply with the prudential regulations. The
Reserve Bank of New Zealand The Reserve Bank of New Zealand (RBNZ, mi, Te Pūtea Matua) is the central bank of New Zealand. It was established in 1934 and is constituted under the Reserve Bank of New Zealand Act 1989. The governor of the Reserve Bank is responsible for ...
monitors compliance with the prudential regulations, but does not prudentially supervise individual building societies for financial soundness. Most such building societies are supervised for compliance with the terms of their debt securities by trustees appointed under securities legislation, and those trustees have various reporting requirements to the Reserve Bank. * Building societies that accept deposits only from offshore customers are not regulated under the Non-bank Deposit Takers Act 2013 or New Zealand's financial markets legislation. Consequently, they are not prudentially monitored by the Reserve Bank or by the Financial Markets Authority. The Reserve Bank cautions on its website that it does not monitor transactions undertaken by New Zealand registered building societies operating in overseas markets. The Department of Internal Affairs is ultimately responsible for all entities that do not expressly fall into other categories for anti money laundering purposes. Building societies' registration details and filed documents are available in the Register of Building Societies held at the New Zealand Companies Office.


Individual building societies

Over the years, a number of building societies were established. Some, including Countrywide Building Society and
United Building Society United Building Society was a New Zealand building society, that became registered retail bank known as United Banking Group. It was acquired by the State Bank of South Australia in 1990, which sold the bank to the Countrywide Bank in 1992 afte ...
, became banks in the 1980s and 1990s. Heartland Building Society (created in 2011 through a merger of Canterbury Building Society, Southern Cross Building Society, and two other financial institutions) became
Heartland Bank Heartland Bank is a New Zealand owned bank that was created in 2011 through the merging of four financial organisations. Heartland was granted its bank registration by the Reserve Bank of New Zealand in 2012. It specialises in motor vehicle loa ...
on 17 December 2012. Remaining building societies include: * Pacific Eagle Capital (formerly General Equity Building Society) * Heretaunga Building Society * Kiwi Deposit Building Society (in the process of dissolution since 2013) * Manawatu Permanent Building Society * Nelson Building Society * Southland Building Society, which in October 2008 became a registered bank known as SBS Bank. However, it remains a building society and retains its mutual structure. * Hastings Building Society merged with SBS Bank in October 2010, but with the Hastings Building Society brand continuing to operate as a building society under the name of HBS Bank. In November 2015, HBS Bank brand was discontinued. * Wairarapa Building Society.


Zimbabwe

In
Zimbabwe Zimbabwe (), officially the Republic of Zimbabwe, is a landlocked country located in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the south-west, Zambia to the north, and ...
, ''Central Africa Building Society'' (CABS) is the leading building society offering a diverse range of financial products and services that include transaction and savings accounts, mobile banking, mortgage loans, money market investments, term deposits and pay-roll loans.


Similar organisations in other countries

In other countries there are mutual organisations similar to building societies: *Austria: In
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
there are four co-operative banks: Allgemeine Bausparkasse (ABV), Raiffeisen-Bausparkasse, Bausparkasse Wüstenrot AG and Bausparkasse der Sparkassen (savings bank). *Finland: In
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bot ...
the Mortgage Society of Finland, a permanent building society, was founded in 1860. Since 2002 mortgage loans are handled by Suomen AsuntoHypoPankki, the licensed bank owned by the society. *Germany: In Germany there are 8 Bausparkassen of the
Sparkassen-Finanzgruppe The ''Sparkassen-Finanzgruppe'' ("Savings Banks Financial Group") is a network of public banks that together form the largest financial services group in Germany and in all of Europe. Its name refers to local government-controlled savings banks ...
named ''Landesbausparkassen'' (LBS) and 12 private Bausparkassen, for example Schwäbisch Hall, Wüstenrot, Deutsche Bank Bauspar AG and so on. *United States: In the United States,
savings and loan association A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; simi ...
s, as well as
credit union A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provis ...
s, have a similar organisation and purpose. *Other: See
Cooperative banking Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking, as discussed here, includes retail banking car ...
.


Operational differences from banks


Roll numbers

Because most building societies were not direct members of the UK clearing system, it was common for them to use a roll number to identify accounts rather than to allocate a six-digit sort-code and eight-digit account number to the BACS standards. More recently, building societies have tended to obtain sort-code and account number allocations within the clearing system, and hence the use of roll numbers has diminished. When using BACS, one needs to enter roll numbers for the reference field and the building society's generic sort code and account number would be entered in the standard BACS fields.


See also

*
Banking in the United Kingdom Banking in the United Kingdom can be considered to have started in the Kingdom of England in the 17th century. The first activity in what later came to be known as banking was by goldsmiths who, after the dissolution of English monasteries by Henr ...
* Mutual organisation * Mutualism


References


Further reading

* * * * * * {{DEFAULTSORT:Building Society