Building Societies in New Zealand
What is a building society, why are they different to banks?
The term building society first arose in the 19th century in the United Kingdom from co-operative savings groups. A building society is a financial institution, owned by its members(customers) that offers banking and financial services, predominantly mortgage lending.
Before the credit crisis of 2008/9 when Banks were not guranteed by the government, Building Societies where a supierior choice for low risk banking to many customers becuase building socieites assets are normally nationally based as opposed to banks which invest in a variety of portfolios and speculate for returns.
With the However the finance company crash of 2006-2009 and the flow on from the credit crisis this has ledd to the consolidation, collapse and restructuring of many Building Societies. For example Southland Building Society moved in October 2008 to become a registered bank.
Building Socities play an important role within the financial industry and offer more competition and choice to some customers where banks are unable to assist.
Popular Building societies of New Zealand include:
Southern Cross - established in 1923 SC The Society is a community focused organisation - supporting your community directly through its business of lending but also through its sponsorship programme carried out by the Southern Cross Building Society Charitable Trust
NBS Nelson Building Society - Since 1862 Nelson Building Society has been growing and developing competitive financial services tailored specifically to the local community. Generations of Nelsonians have entrusted their savings and their futures to our care. This indeed makes us a very safe pair of hands.
CBS Canterbury ( Canterbury Building Society ) is registered under the building societies act of 1965 and operates as a building society as distinct from being a registered bank. CBS Canterbury operates under its own Trust Deed, the trustee of which is Trustees Executors Limited. It is also the only publicly listed Building Society, being on the NZAX market of the New Zealand Stock Exchange.
For more information on building societies use our Directory for phone numbers and website details of financial organisations and for finance services.