What does Building Society mean?

It is not shareholders who own a building society, but the savers and the borrowers who own this mutual fund. The fund’s habitual function is to help financing people’s mortgages and re mortgages, by lending them the necessary capital. This very capital is constituted from money persons contributed to the fund and benefited from the afferent interest rate.

The regulations by which building societies are allowed to raise capital are not so strict ever since the 1980s. This loose view upon the regulations, made way towards a more efficient collaboration between these societies and banking institutions.