UK building societies: the end of mutuality?

Article Abstract:

The 1986 Building Societies Act allowed building societies to convert to banks. The Abbey National Building Society was the first to convert in 1989. When building societies choose to convert to a public limited company they are able to offer customers a wider variety of services, to obtain extra capital and they have to make dividend payments to shareholders. There have been concerns some people save small amounts of money in a number of buildings societies before they convert to receive free shares. Consumer studies have found services from building societies are less costly.

Banking industry, Interpretation and construction, Laws, regulations and rules, Savings and loan associations, Banking law

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The determination of the level of interest rates

Article Abstract:

Governments set short term interest rates and they are constrained by factors such as policy objectives and interestional levels of rates. The Bank of England sets rates in the UK by varying the amount of reserves available. The Bank of England buys and sells treasury bills and changes the price paid when interest rates change. Short term rates are seen as an administrative decision, but the constraints which operate on government mean that there may be little room for manoeuver.

Economic aspects, Economic policy

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Section 4: The monetary system; interest rates, money supply and exchange rates

Article Abstract:

The UK government has used interest rates as its main method of controlling the economy. Interest rates affect other aspects of economic performance, such as foreign rates of exchange. It is argued that as interest rates are fundamental to all aspects of an economy, their level may benefit some transactions and be counter-productive to others. This effect was seen during the sterling problems felt by the UK economy in 1992.

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