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Rock plight highlights need for building societies

September 26, 2007 by admin  
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The difficulties of financial firm Northern Rock have underlined the difference between banks and building societies, it has been claimed.

According to Britannia, building societies are a the safer alternative and that could mean that the popularity of the institution could rise.

Commenting on the crisis Emma Taynton-Young, a spokesperson for Britannia building society said: “The recent market has actually strengthened the difference between banks and building societies, and we find it very easy to explain the difference now because it’s shown the effect of the opposite business model to ours.”

She added: “So in a way, yes, building societies are the safer option, and I think this answers the point as to whether the Northern Rock crisis will provoke a rise in the popularity of building societies.”

The firm also claims that the heavy restrictions placed on building societies contribute to the amount of confidence consumers have in them as institutions.

Tags: difference, building societies, point, britannia building society, amount, Social economy, crisis emma, rise

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