Depository Institution

A depository institution is a financial institution that is

legally allowed to accept monetary deposits from
consumers.
For e.g savings bank, commercial bank, savings and
loan associations, or credit unions)
 Commercial Bank
A financial institution that provides various financial
service, such as accepting deposits and issuing loans
They offer their customers investment products such as
savings accounts, checking accounts and certificates of
deposit
Commercial banks offer their customers interest on their
deposits
 Commercial Bank
(cont)
Commercial banks can offer mortgages, car loans,
personal loans, lines of credit or credit cards.
 Savings
& Loans Associations
A financial institution that specializes in accepting savings
deposits and making mortgage and other loans
It offers mortgage services to people from the savings
and deposits received from private investors
Depositors and borrowers are members with voting rights
and have the ability to direct the financial and managerial
goals of the organization.
 Savings
& Loans Associations

The stockholders of the corporation are the members of

the savings and loan association who share profits and
also have the right to partake in the management of the
association. As members, liability of stockholders is
equivalent only to their individual stock interest and as
such they are not personally liable for negligence or debts
of the savings and loan associations.
 Mutual savings bank
A mutual savings bank is a financial institution chartered
by a central or regional government, without capital stock,
that is owned by its members who subscribe to a common
fund. From this fund claims, loans, etc., are paid. Profits
after deductions are shared between the members. The
institution is intended to provide a safe place for individual
members to save and to invest those savings in
mortgages, loans, stocks, bonds and other securities and
to share in any profits or losses that result. The members
own the business.
 Credit Union
A credit union is a member-owned financial co-operative.
These institutions are created and operated by their
members and profits are shared amongst the owners.

Credit unions are formed by large corporations and

organizations for their employees and members. Profits
are used to fund projects and services that will benefit the
community and interests of its members. The goal is to
better the community, not to make a profit, which means
that credit unions fall under not for profit status.
 Credit Union
Credit unions are formed by large corporations and
organizations for their employees and members. Profits
are used to fund projects and services that will benefit the
community and interests of its members. The goal is to
better the community, not to make a profit, which means
that credit unions fall under not for profit status.