How does a building society differ from a bank and how could one be set up?

[Ancutza]

Could someone give me a quick run-down on how a building society differs in form and function from a bank? A lesson in finance for someone with no financial services background!

What would be the steps involved in establishing a building society? Forget about the ins-and-outs of it from an irish perspective, legislation etc. It's irrelevant in this case as I'm looking at it as an opportunity in a foreign country where it doesn't exist yet.

 

[Brendan Burgess]

It all depends on the legislation of the country you wish to set it up in.

Most countries have financial regulators which control the process. I am sure that the legislation in some countries probably don't allow it.

What are you trying to achieve? A not for profit company to help people buy houses? I would guess that if you have no experience of financial services and you are a foreigner, you would not be allowed to raise money from investors to set up any form of financial institution.

Try to find the equivalent of Askaboutmoney in the country in which you want to set up this building society.

Brendan

 

[Ancutza]

Thanks for that Brendan and you're right, it's quite possible that the legislation might not allow the formation of a building society here (here being Romania). But if someone could give me a brief run down on how one functions I'd be grateful. Would help me investigating as to whether or not such an entity could be formed here.