Building societies 'can weather the credit crunch'

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Building societies 'can weather the credit crunch'

Fri 16th May 2008

Building societies remain "optimistic" they will survive the shrinking loans market, a spokesperson for Britannia reveals.

Despite conceding recent financial turmoil has impacted upon business, Jayne Dono is confident building societies are better-placed than banks to weather the storm because of their general perception as prudent and well-capitalised businesses.

She explains: "At a time when consumers are nervous and wary of financial organisations, the mutual status of building societies offers reassurance.

"The mood at Britannia is optimistic."

Her analysis supports that of the Building Societies Association (BSA) whose chairman last week told an annual conference the testing market conditions had driven a slew of new customers their way.

Dono adds Britannia too has seen an "influx" of new customers since last summer.

The building society was founded in 1856 and claims to be the second largest in the UK.

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