With immediate effect he replaces David Webster, chief executive of the Hanley Economic Building Society, who has held the post for the past year.
At the same time, Nationwide chief executive Graham Beale has been appointed as deputy chairman.
Mr Cutter says that the sector’s ‘back to basics banking’ approaching has stood it in “good stead” amidst the turmoil of the financial crisis and beyond. Service, ethics and business behaviour are now high on the list of consumer criteria along with product, rate and access and this is to our benefit.
He said: “The year ahead will clearly bring challenges, whether in the form of the muted economic outlook for the UK, the remaining potential for back-wash from the eurozone or the ever growing financial services regulatory agenda. I am optimistic that the sector will continue to rise to these and any other challenges as they come our way.
“As BSA chairman, I look forward to a year where we continue to reinforce the fact that building societies and other mutuals are very real challengers to the large Plc banks - we are open for business.”