By Matthew Legg

Published at 11:23, Wednesday, 19 November 2008

A CUMBRIAN MP has called on the county’s three building societies to invest cash into communities to stimulate the economy.

Tim Farron: ‘People have shown faith in local banks’

The Cumberland, Penrith and Furness building societies have all reported a rise in savings deposits in the last month as savers look for a safe home for their cash.

Now, Tim Farron, Liberal Democrat MP for Westmorland and Lonsdale, has called on them to redistribute some of the money to inject some life into the recession-threatened Cumbrian economy.

He also urged lenders to pass on in full the recent 1.5 per cent cut in the Bank of England base rate.

Mr Farron said: “At a time when the banking sector is experiencing so much turmoil, it’s a real credit to our local building societies that people feel confident enough to entrust them with record levels of deposits.

“Banks which have based their lending policy on saving levels now have record amounts at their disposal.

“It’s critical that they use these funds to lend to responsible local businesses and by doing so help stimulate the economy.

“Local building societies have a responsibility to support home owners by passing on the 1.5 per cent interest rate cut on to hard-pressed families.

“People have shown their faith in our local banks, now it’s time for the banks to repay their trust.”

The Carlisle-based Cumberland Building Society, Cumbria’s largest independent financial institution, saw its best-ever month for savings deposits in its 158-year history in October, with more than £35m invested.

Penrith Building Society usually receives deposits to accounts worth around £200,000 in its better months, but last month it saw £1.3m deposited.

MLegg@cngroup.co.uk

Published by http://www.newsandstar.co.uk