Building Societies

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 9th December 1958.

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Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Halifax 12:00 am, 9th December 1958

asked the Chancellor of the Exchequer why, in laying down the proportion of total assets held as free reserves by building societies in order to qualify for trusteeship status, he selected 1½ per cent. as the initial and 2½ per cent. as the ultimate minimum.

Mr. Amory:

I would refer my hon. Friend to the Answer I gave to him on Tuesday, 2nd December, 1958.

Photo of Mr Maurice Macmillan Mr Maurice Macmillan , Halifax

Does not my right hon. Friend agree that it will be extremely difficult for building societies to raise their reserve ratio from 1½ per cent, to 2½ per cent. without either postponing a reduction in mortgage rates or even raising mortgage rates, or at least retarding their rate of growth?

Mr. Amory:

I think the details can best be debated when we come to the Bill.