Dunfermline Building Society
Encyclopedia
The Dunfermline Building Society is a building society
based in Dunfermline
, Fife
, Scotland
. It was the largest building society in Scotland and the 12th largest in the United Kingdom
based on total assets of £3.3 billion at 31 December 2007. It was a member of the Building Societies Association
.
On 28 March 2009, reports indicated the Society was no longer viable, and would be put up for public sale, to be managed by the Bank of England
. This process led to acquisition of the Society's branches, good loans and deposits by the Nationwide Building Society
with the Bank of England assuming control of £1bn in commercial lending and the Society's poorer-quality and shared ownership mortgages.
It expanded throughout the 19th and 20th centuries, and acquired over 20 other organisations including: the Stenhousemuir, Peebles, Fourth Fifeshire Investment Company, the Stirlingshire, and the Edinburgh and Paisley Building Society.
A telephone banking service, Dunfermline Direct, was launched during Spring 1999.
By the end of 2005, the Society had 34 branches and 38 agencies throughout Scotland. Around 20% of its business is generated outwith Scotland. The Society also has a large commercial lending book and is leading the way in investment in social housing.
(FSA) stated that such capital would not be possible.
On 28 March 2009, reports indicated the building society was no longer viable, toxic assets would be stripped out and the remaining business put up for public sale, to be managed by the Tripartite Authorities (Bank of England
, FSA and HM Treasury
). BBC Scotland
business editor Douglas Fraser broke the story, where a £26m loss was announced in late March 2009. Around 500 jobs are at risk, where half are employed at its headquarters in Fife and half in the network of 34 branches.
It was announced on 30 March that the Nationwide Building Society
had bought the retail and wholesale deposits, branches, head office and most of the residential mortgage book of the Dunfermline, with the Bank of England assuming control of £1bn in commercial lending.
Dunfermline Building Society is a trading division of Nationwide Building Society which is authorised and regulated by the Financial Services Authority under registration number 106078. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority.
Building society
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially mortgage lending. These institutions are found in the United Kingdom and several other countries.The term "building society"...
based in Dunfermline
Dunfermline
Dunfermline is a town and former Royal Burgh in Fife, Scotland, on high ground from the northern shore of the Firth of Forth. According to a 2008 estimate, Dunfermline has a population of 46,430, making it the second-biggest settlement in Fife. Part of the town's name comes from the Gaelic word...
, Fife
Fife
Fife is a council area and former county of Scotland. It is situated between the Firth of Tay and the Firth of Forth, with inland boundaries to Perth and Kinross and Clackmannanshire...
, Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
. It was the largest building society in Scotland and the 12th largest in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
based on total assets of £3.3 billion at 31 December 2007. It was a member of the Building Societies Association
Building Societies Association
The Building Societies Association is the trade organisation of the building societies in the United Kingdom. In 2011 the 48 building societies in the UK had total assets of over £317 billion. 15 million adults have building society saving accounts and over 2.9 million adults are currently buying...
.
On 28 March 2009, reports indicated the Society was no longer viable, and would be put up for public sale, to be managed by the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
. This process led to acquisition of the Society's branches, good loans and deposits by the Nationwide Building Society
Nationwide Building Society
Nationwide Building Society is a British building society, and is the largest in the world. It has its headquarters in Swindon, England, and maintains significant administration centres in Bournemouth and Northampton...
with the Bank of England assuming control of £1bn in commercial lending and the Society's poorer-quality and shared ownership mortgages.
History
The Dunfermline was established in 1869 in the town of Dunfermline from which it takes its name.It expanded throughout the 19th and 20th centuries, and acquired over 20 other organisations including: the Stenhousemuir, Peebles, Fourth Fifeshire Investment Company, the Stirlingshire, and the Edinburgh and Paisley Building Society.
A telephone banking service, Dunfermline Direct, was launched during Spring 1999.
By the end of 2005, the Society had 34 branches and 38 agencies throughout Scotland. Around 20% of its business is generated outwith Scotland. The Society also has a large commercial lending book and is leading the way in investment in social housing.
2009 financial crisis
In the 6 months running up to March 2009 the Board explored various options to secure an injection of capital (between £60m and £100m) which would allow the Building Society to continue operating as an independent mutual building society. The Financial Services AuthorityFinancial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
(FSA) stated that such capital would not be possible.
On 28 March 2009, reports indicated the building society was no longer viable, toxic assets would be stripped out and the remaining business put up for public sale, to be managed by the Tripartite Authorities (Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
, FSA and HM Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
). BBC Scotland
BBC Scotland
BBC Scotland is a constituent part of the British Broadcasting Corporation, the publicly-funded broadcaster of the United Kingdom. It is, in effect, the national broadcaster for Scotland, having a considerable amount of autonomy from the BBC's London headquarters, and is run by the BBC Trust, who...
business editor Douglas Fraser broke the story, where a £26m loss was announced in late March 2009. Around 500 jobs are at risk, where half are employed at its headquarters in Fife and half in the network of 34 branches.
It was announced on 30 March that the Nationwide Building Society
Nationwide Building Society
Nationwide Building Society is a British building society, and is the largest in the world. It has its headquarters in Swindon, England, and maintains significant administration centres in Bournemouth and Northampton...
had bought the retail and wholesale deposits, branches, head office and most of the residential mortgage book of the Dunfermline, with the Bank of England assuming control of £1bn in commercial lending.
Dunfermline Building Society is a trading division of Nationwide Building Society which is authorised and regulated by the Financial Services Authority under registration number 106078. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority.