BoE announced the transfer of core parts of Dunfermline Building Society to Nationwide Building Society. These parts include Dunfermline's retail and wholesale deposits, branches, head office and originated residential mortgages (other than social housing loans and related deposits). The social housing loans of Dunfermline's customers (and related deposits) were transferred temporarily to DBS Bridge Bank Ltd, a bridge bank owned by the BoE. The rest of Dunfermline's business was placed into the Building Society Special Administration Procedure (BSSAP) with KPMG as administrator.
The decision was designed to protect depositors and safeguard financial stability following a significant worsening in Dunfermline's financial position. FSA decided on 28 March that Dunfermline was unlikely to meet FSA's threshold conditions for authorisation. The BoE acted under its powers in the Banking Act 2009 and the Code of Practice issued by HM Treasury. The transfer to Nationwide took effect on 30 March through the BoE issuing a Property Transfer instrument.