Mutuality, de-mutualization and communities: the implications of branch network rationalization in the British building society industry

The paper examines the withdrawal of branches from local communities by fin ancial institutions. It assesses whether mutually owned building societies are more adept than the former societies that have converted to public Limi ted companies (plcs), or the high street banks, in serving disadvantaged co mmunities. The paper shows that during the mid-1990s: mutual building socie ties were more Likely than former societies that have converted to plcs to maintain their branch network; mutual societies were less likely than banks to withdraw from socially deprived locations and more likely to open branc hes in such places; differences between mutual societies and convertors are less marked, but mutual institutions appear less likely than convertors to close branches in deprived communities. Among the remaining mutual buildin g societies there are differences of perspective, with more commercially-mi nded societies less positive than socially-concerned mutuals about the need to maintain or even expand branches in disadvantaged areas.