A financial institution, organized cooperatively or corporately, that holds the funds of its members or clients in interest-bearing accounts and certificates of deposit, invests these funds chiefly in home mortgage loans and may also offer checking accounts and other banking services.
A financial institution that chiefly accepts and holds the personal savings of depositors and makes mortgage loans on houses.
A federal or state-chartered financial institution that accepts deposits primarily from individuals and then loans money out in mortgages, car loans, or other debt. Savings and loans in the United States went through a period of turmoil in the late 1980s as rising interest rates and deregulation led to the failure of many S&Ls. The Federal Savings and Loan Insurance Corporation (FSLIC) was disbanded and the Office of Thrift Supervision, which is part of the U.S. Treasury Department, took its place. The Resolution Trust Corporation and the Resolution Funding Corporation were created to close down failed S&Ls and reimburse account holders.