Monday, 9 July 2012

Mutuals benefit from mistrust of commercial banks

The Independent reports that mutual building societies and the Cooperative Bank are benefiting from the troubles of the big banks quoted on the stock exchange. As the director of the Building Societies Association was quoted as saying: "Customers are turning to put their faith in institutions that legally and constitutionally are focused on the customer, not the shareholder."

Not only mutual, but ethical as well, Ecology Building Society "has seen its assets rise 38 per cent to £103.5m between 2007, before the credit crunch, and last year. 'In 2011, our savings inflow was double what we expected as people sought an institution they could trust with their money,' says a spokesman. 'This year we're seeing people move their money because they can no longer stomach the behaviour of the mainstream banks.'"

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