The government is keen to keep the mutual sector afloat
The Financial Services Authority is methodically working through the list of remaining building societies to ensure that they are strong enough to withstand the current financial storm.
With a proposed solution for West Bromwich, the City regulator is now expected to move on to the handful of other societies that might need a capital injection to boost their financial strength after loans to the property sector have turned sour.
The vast majority of the 50 or so societies are sound in a sector dominated by Nationwide, which has already stepped in to rescue rivals Portman, Cheshire and Derbyshire and made clear that its appetite for future deals is diminished.
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