Record Breaking Month For Savers
Oct 31, 2008
The collapse of Bradford and Bingley plc followed quickly by the Icelandic banks Landsbanki and Kaupthing Singer & Friedlander has led to a rush of savers to transfer funds to what many regard as the safer option of building societies and Beverley Building Society is proud to report that it has seen its largest ever inflows of new savers funds in its 142 year history.
Chief Executive Phil Gray comments ‘The news of bank failures has understandably made people review where their savings are held and how much is held with whatever institution they are with. The level of enquiries received by the Society over the last few weeks has been unprecedented and the overriding concern of customers is the safety of their savings. One of the big problems for banks like Bradford & Bingley was its reliance on borrowing from other banks and once we have explained to customers that we do not owe any banks any money whatsoever we have found that that they feel more comfortable dealing with us.’
As a result of the record inflows, the Society’s liquidity ratio has increased to over 28%. Mr Gray added that whilst this was excellent news and puts the Society in a strong liquid position it would not be relaxing its mortgage lending position preferring instead to retain a highly liquid position to provide the safeguards and security for all its customers.
