The Lemon Fool

You may ask, does it matter? Anyone depositing less than £85,000 is covered by the guarantee scheme.
As that covers most savers/depositors, this question is primarily academic.

With the recent rises in interest rates it occurrred to me that there could be some building societies who have given unhedged fixed rate mortgages over the years since 2008.
As the bank rate rises they will either make a loss on those mortgages or be unable to attract sufficient retail deposits to keep funding new business.
Are there any building societies struggling with the rises in interest rates who perhaps could not survive a 'run on the bank'?

...If there is a risk of this happening to a BS they are usually taken over or merged with a bigger, safer one.

Kidman wrote:You may ask, does it matter? Anyone depositing less than £85,000 is covered by the guarantee scheme.
As that covers most savers/depositors, this question is primarily academic.

With the recent rises in interest rates it occurrred to me that there could be some building societies who have given unhedged fixed rate mortgages over the years since 2008.
As the bank rate rises they will either make a loss on those mortgages or be unable to attract sufficient retail deposits to keep funding new business.
Are there any building societies struggling with the rises in interest rates who perhaps could not survive a 'run on the bank'?

In my experience Building Societies are among the most conservative hedgers of fixed interest rate risk. Not impossible though.