building society
Definition
Noun: - A financial institution, primarily in the United Kingdom and some Commonwealth countries, that accepts savings deposits from members and uses those funds to provide mortgage loans for purchasing homes. It is owned by its members (savers and borrowers) rather than shareholders.
Usage
- Building societies are a traditional source of mortgage finance in the UK.
- They are mutual organizations, meaning their customers are also their members.
- The term is used to distinguish these member-owned institutions from shareholder-owned banks.
Examples
Advanced Usage
- "Mutual building society": This phrase is sometimes used for emphasis to highlight the member-owned structure, especially when contrasting with demutualized former societies.
- As a mutual building society, its profits are returned to its members in the form of better rates.
Variants and Related Words
- Savings and loan association (S&L) (noun): The roughly equivalent financial institution in the United States.
- Mutual (adjective/noun): Describing an organization owned by its members; often used as a shorthand for a mutual building society or insurance company.
- Demutualize (verb): The process by which a mutual building society converts to a publicly traded company (a bank).
Synonyms
- Thrift institution (general term)
- Mutual society (broader term that can include other types of member-owned organizations)
Related Phrases
- Member-owned: Describes the fundamental structure of a building society.
- Savings account: The primary type of deposit account held at a building society.
- Mortgage lender: A key function of a building society.
Noun
-
British equivalent of United States savings and loan association
