We need a new building society

Not one run by another fingers (INBS) or one that appoints international guys and Big 4 partners in the expectation of demutualising (EBS).

I mean a sensible building society. And one with a charter that sets down the following:

  • Lends on low salary multiples only
  • Has a sustainable funding model mostly based on deposits
  • Doesn’t fund cannies or developers
  • Has a proper functioning board
  • Is non-political

Any thoughts?

Would the teachers found a new EBS?

Couldn’t agree more. Even if it had no branch netwrok or much in the way of normal banking infrastructure, I’d use it out of principle.

After wondering what would be required to get a banking licence I found this on the Central Bank website: Checklist for completing and submitting Bank Licence Applications

It would go the way of any other building society. If it is sitting on a pile of assets then the members will be induced to sell up and if there is no hope of carpet bagging them there’ll be very few members.
Just like the dublin golf clubs; the existing members will be tempted to run it in to the ground just to get a payout for the assets held by the not for profit organisation.

Are Irish people really that money obsessed? Maybe they are.

The UK still has a decent number of functioning and viable building societies, even after the post bubble bust period of amalgamations and forced takeovers.

The Yorkshire recently managed to buy back government debt holdings in the society:

yorkshirepost.co.uk/business … _1_4077220

Surely there is room for at least one or two building societies in Ireland?

Maybe you could take away the financial incentive members might have to demutualise by enshrining in the organisation’s constitution that any proceeds from such would go to charity or government.

It’s a great idea. I would love to see it happen.

On PAPER building societies and credit unions are great ideas, but in REAL LIFE

Why not give credit unions an upgrade path ??

Of course their are some pitfalls to be avoided but on principal a very good option. Surely their must be some principalled people willing to invest and run them. Slow and steady growth not pyrotechnics is needed…

There’s an Irish branch of Nationwide UK here but the products it offers are fairly limited.