UK mutual societies quake after Bristol & West

BRITISH building societies Birmingham Midshires and Bradford & Bingley could be the next to face an assault on their mutuality…

BRITISH building societies Birmingham Midshires and Bradford & Bingley could be the next to face an assault on their mutuality after the £600 million absorption of Bristol & West by the Bank of Ireland. The acquisition of the ninth largest British building society has prompted renewed speculation about the fate of those still committed to mutual status.

The tussle for business in the cut throat mortgage market has been blamed for forcing a split between British societies wishing to remain solely owned by their members and those which plan to convert to banks via stock market flotations or sell themselves to banks.

Birmingham Midshires is in wait and see mode, a spokesman reiterating the mantra that it "would continue to deliver the best opportunities for its members", adding that "it's a very exciting time - anything can happen".