Equity between Members

T. J. Gough

Chapter 4 in The Economics of Building Societies, 1982, pp 47-64 from Palgrave Macmillan

Abstract: Abstract While the previous two chapters have been concerned with the two main categories of building society members (i.e. savers and borrowers) we have said little so far about the question of equity. Being mutual institutions, one would expect the building society movement to be interested in maintaining equity between these two categories. This view is supported by a statement by Mr Ralph Stow that interest policy was formulated ‘to bring about as far as possible the best balance of benefits between existing investing and borrowing members’.1 While the question of equity is partly in the building societies’ own realm through decisions on interest rates, it is also subject to a major outside influence — namely the rate of inflation. In this chapter we shall be particularly concerned with the real rates of return to building society investors and borrowers. But before turning to such matters it is necessary to say a little more about savers and borrowers.

Keywords: Inflation Rate; Saving Account; Mortgage Rate; Building Society; Interest Rate Differential (search for similar items in EconPapers)
Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-05673-6_4

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DOI: 10.1007/978-1-349-05673-6_4

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