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Building societies attract record savings

January 22, 2008 by admin  
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Building societies attracted record savings of more than £16 billion over the course of 2007 according to the latest figures.

The Building Societies Association (BSA) said that this figure was double the £8.3 billion inflow of 2006.

The previous record was in 1988, when £13.6 billion was deposited as savers reacted to the stock market crash of October 1987.

Adrian Coles, director-general of the BSA, said: “2007 was a bumper year for savings. The majority of the deposits came in the latter months of 2007, so a significant proportion is almost certainly funds withdrawn from Northern Rock bank.

He added that a “considerable amount” would be from households increasing the amount they saved in order to prepare for an uncertain year ahead.

Societies also raised a net funding of £19.1 billion in the wholesale markets in 2007 compared with £13.5 billion in the previous year.

Much of the cash was received in the last quarter of the year following the Northern Rock crisis.

Meanwhile the Council of Mortgage Lenders’ revealed record lending in 2007.

Tags: northern rock, proportion, inflow, mortgage, bumper, building society, funding

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