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The Dunfermline Building Society was a
The Dunfermline was established in 1869 in the town of Dunfermline from which it took 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 was generated outwith Scotland. The Society also had a large commercial lending book and was leading the way in investment in social housing.
Dunfermline Building Society
Building Societies Association
KPMG Building Societies Database 2008
{{Authority control Financial services companies established in 1869 1869 establishments in Scotland 19th century in Scotland Companies based in Fife Dunfermline Scottish brands Organizations established in 1869 Financial services companies of Scotland
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 savings and mortgage lending. Building societies exist in the United Kingd ...
and later a trading division of Nationwide Building Society
Nationwide Building Society is a British mutual organisation, mutual financial institution, the seventh largest co-operative banking, cooperative financial institution and the largest building society in the world with over 16 million members. ...
, based in Dunfermline, Scotland. Before its 2009 merger with Nationwide, it was the largest building society in Scotland and the 12th largest in the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
based on total assets of £3.3 billion at 31 December 2007. It was a member of the Building Societies Association
The Building Societies Association (BSA) was originally established in 1869. It is the voice for all 43 UK building societies as well as six large credit union
A credit union, a type of financial institution similar to a commercial bank, i ...
.
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
Nationwide Building Society is a British mutual organisation, mutual financial institution, the seventh largest co-operative banking, cooperative financial institution and the largest building society in the world with over 16 million members. ...
with the Bank of England assuming control of £1bn in commercial lending and the Society's poorer-quality and shared ownership mortgages. The Dunfermline was fully integrated into Nationwide in June 2014.
History
The Dunfermline was established in 1869 in the town of Dunfermline from which it took 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 was generated outwith Scotland. The Society also had a large commercial lending book and was 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 Authority (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 andHM Treasury
His Majesty's Treasury (HM Treasury), occasionally referred to as the Exchequer, or more informally the Treasury, is a department of His Majesty's Government responsible for developing and executing the government's public finance policy and ...
). 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
Nationwide Building Society is a British mutual organisation, mutual financial institution, the seventh largest co-operative banking, cooperative financial institution and the largest building society in the world with over 16 million members. ...
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 became a trading division of Nationwide.
On 24 October 2013, Nationwide announced that Dunfermline Building Society would be merged with the company.
References
External links
Dunfermline Building Society
Building Societies Association
KPMG Building Societies Database 2008
{{Authority control Financial services companies established in 1869 1869 establishments in Scotland 19th century in Scotland Companies based in Fife Dunfermline Scottish brands Organizations established in 1869 Financial services companies of Scotland