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Nationwide, which has around 14 million customers, will merge with two smaller firms, the Derbyshire and Cheshire Building Societies, according to the BBC.
Small lenders are experiencing significant financial pressure due to increasing mortgage defaults and the credit squeeze.
Both Derbyshire and Cheshire - who approached Nationwide separately - undertook the move to help them weather the current economic storm.
Graham Beale, chief executive at Nationwide, commented: "Nationwide is in a unique position because of its size and financial strength to provide support, and we regard it as both responsible and commercially beneficial to undertake these mergers."
According to its website, Nationwide has mutual status, meaning it is owned and run for the benefit of its customers.
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