EU referendum result
24 June 2016
BANK RATE CHANGE
On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effective from 0.25% to 0.50%.
A spokesperson for Yorkshire Building Society said:
There will be little immediate impact on our day-to-day activities as a result of the Leave vote and we will continue to provide long-term financial security for customers.
As a member-owned organisation we are mindful our customers will have many different views but whether voters chose to leave or stay in the EU, our priorities remain unchanged.
We are confident there will be little immediate impact on our day-to-day activities.
While it will take time for the impact of the exit vote to be fully understood, as a responsible organisation we have developed a number of contingency plans to make sure we are best placed to respond to any possible changes. We remain mindful, however, that there are a number of risks associated with leaving the EU and we will manage these should they arise.
We can reassure our customers that the Society is in a strong and secure position to ensure financial security during what we understand is an uncertain time.
Yes, the Group continues to remain financially sound. All customer deposits are and will remain safe.
In terms of the backstop FSCS (Financial Services Compensation Scheme), although the size of the protection is determined by the EU Deposit Guarantee Scheme, the Bank of England confirmed that savers would still receive the same level of protection (£75,000, or £150,000 for joint accounts) in the event of a Leave win.
It’s very difficult to predict what will happen to interest rates following the EU Referendum.
It would be inappropriate to speculate during such uncertainty but if any of the Society rates (savings or mortgages) rise or fall, we would of course communicate with customers in line with their product terms and conditions.
The Society’s funding strategy is biased towards retail markets, which account for the majority of our funds.
We do, however, additionally choose to target a small amount of funds (c.20-25%) from wholesale markets to ensure we don’t become over-reliant on any single source of funds. Legally, we can’t have more than 50% of non-retail deposits.
We are satisfied that our current balance between wholesale and retail funding sensibly mixes the benefits and risks associated with these two types of funding.