Building societies v banks

MrMicawber_2

Just to point out that banks can fund themselves with 75% wholesale whereas Building Societies are only allowed 50%. I.e. B.Socs have to fund themselves 50% from their investment accounts which is less risky than the rather complex wholesale arena (e.g. the securitisation of bundled up poor quality loans).

baby_boomer

MrMicawber wrote: »

Just to point out that banks can fund themselves with 75% wholesale whereas Building Societies are only allowed 50%. I.e. B.Socs have to fund themselves 50% from their investment accounts which is less risky than the rather complex wholesale arena (e.g. the securitisation of bundled up poor quality loans).

But legislation is currently going through Parliament, at the request of the B.Socs, to allow their wholesale funding to rise to 75% as well :cool:.

engworldcup2018 wrote: »

Would you say the Derbyshire Building society is "safe" I wanted to take up their one year deal at 6.9%

For a long time Derbyshire had the lowest retail savings ratio of any BS [they almost refused to take savings from outside Derbyshire in order to keep out "carpetbaggers"], but I think that "distinction" may now have been taken up by Britannia.