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Coventry Building Society has expressed an interest in buying nationalised bank Northern Rock. The building society said Northern Rock’s customers would benefit if the bank was remutualised as part of the Coventry organisation, which said it has performed well throughout the financial crisis.

Northern Rock was nationalised three years ago and is now expected to be sold back to the private sector. Coventry Building Society said that the government had not yet confirmed the timetable for the sale of the North East-based business.

In a statement, Coventry Building Society said: “Coventry Building Society's commitment to mutuality has helped deliver consistently superior financial performance and member value throughout the financial crisis.

“The board believes that these credentials would benefit Northern Rock customers if it were to be remutualised as part of Coventry Building Society.

“The government and UK Financial Investments Ltd have yet to confirm the process and timetable for the sale of Northern Rock. When that decision is made the Board will examine the criteria laid down and decide the next steps to take.

“At this stage we cannot rule anything out but emphasise that whatever decision is made will be in the best interests of the society's members.”

Supermarket giant Tesco's banking arm, Virgin Money and private equity firm JC Flowers are also rumoured to be interested in buying Northern Rock.

Northern Rock was split into a mortgage and savings bank called Northern Rock and Northern Rock Asset Management when it was bailed out by the taxpayer. It is the former half which the government is preparing to return to the private sector.

The reports come less than a fortnight after Coventry Building Society announced it had agreed to merge with Stroud & Swindon Building Society.

The expanded organisation, which will be based in Coventry, would allow overall asset size to increase from £18.4bn to £21.1bn, said Coventry.