Facts about Thrifts talk about the thrift institution. It is also known as a savings and loan association. Do you know the primary function of thrifts? It makes loans, mortgage and accepts deposits and savings. The term thrift or S&L is mostly spotted in US. The same financial institutions are spotted on other countries under the different names like trustee savings banks and building societies. They can be found in Commonwealth countries, Ireland and UK. Find out other impressive facts about thrifts below:
Facts about Thrifts 1: the mutual saving banks
Thrift is also called mutual saving banks where the voting rights are owned by the borrowers and depositors.
Facts about Thrifts 2: the rights of the members
The members of the thrift have the rights to decide the goal of the organization related to their management and finances. Therefore, thrift is often compared with a credit union.
Facts about Thrifts 3: a joint-stock company
The thrift can also take form as a joint-stock company. The stock of the financial institution is traded for public. In this case, the members do not own any rights to control the management.
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Facts about Thrifts 4: the law
Thrift is controlled by the law. The financial institution cannot spend more 20 percent lending in commercial loans.
Facts about Thrifts 5: the beginning of thrift in US
The Philadelphia Saving Fund Society was the first savings bank in US. On 20 December 1816, it was founded in the country. Then the same financial institutions were established later.
Facts about Thrifts 6: the beginning of thrift in UK
Reverend Henry Duncan founded the first saving banks in UK in 1810. The history of bank movement in UK is recorded. The building society had been established since 1770s.
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Facts about Thrifts 7: the importance
Thrift is considered as an important financial institution. In the beginning of 20th century, it was known as a strong force. They helped the people to get mortgage lending and home ownership.
Facts about Thrifts 8: the famous portrayal
Have you watched film It Is A Wonderful Life? The movie was released in 1946. It gave a good portrayal of thrift.
Facts about Thrifts 9: the popularity of thrift
Thrift was flourished and spread in United States because it provided the low cost funding for the customers due to Federal Home Loan Bank Act. Compared to the regular commercial bank, the thrift could play higher interest for the saving deposits. In 1980, all thrifts were granted in US. They had the right to issue transaction account and give commercial and consumer loans.
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Facts about Thrifts 10: the decline
Thrift was declined in 1986 until 1995 during the Savings and Loan Crisis. The primary reason was related to unstable real estate lending.
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