The bank in Burnley Road is the biggest branch in Padiham and fears were rife over the weekend it could go under, but a last-minute lifeline was given yesterday morning when the Government announced it would nationalise the mortgage and loans side of the bank.

On top of that, Abbey, owned by Spanish banking giants Banco Santander, will take over the branches, including Padiham, and all savings.
This means the Padiham branch is safe for the time being, and savings and mortgages are protected.

Fears had grown recently that the bank was heading for crisis, which saw customers nationwide withdrawing their funds. Financial bosses are urging people not to panic and withdraw their money, as experts say there is little chance customers will lose their money.

Mayor of Padiham Coun. Mark Jinkinson said he was relieved people's money had been safeguarded, but added there were still concerns over the move: "I hope we do not see any job losses through this because Padiham has suffered enough over the years in this way. This just goes to show this sort of crisis can affect people on a grass roots level.

"We have both an Abbey and a Bradford and Bingley in Padiham, and looking at that we would assume one would be merged with the other, and we don't want another empty building, but it is early days and we don't know what will happen ultimately. But I am glad people's mortgages are protected and their homes safe."

Chancellor of the Exchequer Alistair Darling said the Government had moved to nationalise the bank "to provide the stability" the UK financial sector needs. He added taxpayers would now be protected from any losses due to the Financial Services Compensation Scheme.

Bradford and Bingley, based at the former Padiham Building Society headquarters, opened in 1958 and Bradford and Bingley Building Society moved into the building in the late 1980s. It is the second UK bank to be nationalised since the start of the global credit turmoil, following Northern Rock in February.