What is a Savings and Loan Association?
A Cooperative Financial Institution
A savings and loan association (S&L) is a cooperative financial institution that accepts deposits and makes loans to its members. S&Ls were originally founded to provide affordable loans to ordinary people, particularly for the purchase of homes.
Other Names and Types
Savings and loan associations are also known as savings banks, thrifts, and thrift institutions. They are chartered and regulated by either a state or the federal government.
Current Status in the United States
According to the Columbia Electronic Encyclopaedia (2007), savings and loan associations in the United States are a type of depository institution that accepts deposits and makes loans to its members. S&Ls are regulated by the Office of Thrift Supervision (OTS).
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