By Nick Griffithsand Chris Story

Last updated at 15:05, Wednesday, 08 October 2008

Bosses at The Cumberland Society today said they had no need for government rescue cash, stressing traditional values had left them “strong and successful”.

Responsible: The Cumberland Building Society continues not just to survive but to thrive in a very difficult market

Deputy chief executive John Leveson even said the building society had just recorded its second best ever month for savings deposited.

He suggested this could be because savers were turning from the big international banks and turning to a recognised, local name to look after their cash.

Mr Leveson told the News & Star: “The government package has no impact directly on us. We are not invited to be part of it. We don’t need to be part of it.

“We are strong and successful without government support.

“Because we have run the Cumberland Building Society so prudently, cautiously and without getting involved in much riskier lending that much bigger banks have, we do not have their problems.

“This (the government package) has been done for the banks that have got the problems.

“We never got involved in any sub-prime lending. We never bought any mortgage assets from the other banks and building societies.

“All our mortgages are funded by our savers. We are not dependent on the money markets. That is why we are in a healthy position.

“In fact, September was a record month. It was our second best ever month for savings coming into the building society.”

The Cumberland Building Society has 33 branches in Cumbria, Lancashire and south west Scotland, as well as 18 Cumberland Estate Agents branches. Mr Leveson added: “People might find it hard to articulate real reasons why (they have invested with us).

“They feel there is a risk with putting their savings with a bank. They have this instinct, it is a correct instinct, the local building society is strong and it is safe.

“The head office is in Carlisle. We are not a remote organisation.

“They can pick up the phone and ring us. We’ve got a branch in every local town of any size at all.

“All that comes together to give people this feeling that their savings are safe with the Cumberland. It is a good, old traditional building society.

“A year ago we were maybe criticised for being a bit traditional. But we were always making decisions to run this building society for the long term.

“Here we are, strong and successful. All these big banks, there are all listed there (to receive cash from the government).”

On the package, Mr Leveson added: “Something had to be done. Obviously there are problems with the banking system.

“It’s to the benefit of everyone to have a functioning banking system.

“This is a massive package. It is probably the biggest economic initiative ever taken by the Treasury.

“The problems that are there in the banking system, six months ago we never imagined, never predicted it would get as bad as it has got.

“It is trying to get the banking system to lend to each other and lend a bit more readily to the man in the street, the local business.

“Will this do that? Quite honestly, only time will tell. It is impossibly for us to predict.”

Another of Cumbria’s independent financial institutions, Penrith Building Society, also welcomed the chancellor’s announcement – although it never expects to have to call on the support now available.

It too believes its traditional local values – and the fact they have not taken the risks associated with big banks – are the key to its success.

Chief executive Chris Hayward said: “As far as Penrith Building Society is concerned, business is doing fairly well at the moment.

“We do appreciate that in the wider market things need to be done to try and stabilise the banking sector as a whole. Hopefully the measures announced will do that.”

Penrith Building Society has just one branch – in King Street, Penrith – and employs 17 people. It was founded in the 1870s.

First published at 11:50, Wednesday, 08 October 2008
Published by http://www.newsandstar.co.uk