THRIFT

BANK
What is Thrift
Bank?
A thrift bank is a type of small
financial institution that primarily
accepts deposits and originates
home mortgages. Known also as
"savings and loan associations,"
or S&Ls. thrifts differ from larger
commercial banks such as Wells
Fargo or Bank of America in
offering higher savings account
yields and limited lending to
businesses.
FAST FACT:

THRIFT BANKS ARE

STRUCTURED EITHER AS
CORPORATE ENTITIES OWNED
BY SHAREHOLDERS, OR AS
MUTUAL ASSOCIATIONS
OWNED BY THEIR CUSTOMERS,
BOTH BORROWERS AND
DEPOSITORS
WHILE THE THRIFTS' CORE
OFFERINGS ARE TRADITIONAL
SAVINGS ACCOUNTS AND HOME
LOAN ORIGINATION, THESE
INSTITUTIONS INCREASINGLY
ALSO OFFER CHECKING
ACCOUNTS, PERSONAL AND AUTO
LOANS, AND CREDIT CARDS.
THRIFTS ARE STRUCTURED EITHER
AS CORPORATE ENTITIES OWNED
BY SHAREHOLDERS, OR AS
MUTUAL ASSOCIATIONS OWNED
BY THEIR CUSTOMERS, BOTH
BORROWERS AND DEPOSITORS.
Thrift Banks in The
Philippines
The top thrift banks are BPI Family, Philippine Savings
Bank (PSBank) and RCBC Savings Bank, ranked by
total assets as of September 2018. They are the
subsidiaries of top universal banks BPI, Metrobank
and RCBC, respectively. Following closely are
billionaire banks Philippine Business Bank and China
Bank’s subsidiary China Bank Savings.
What is the difference
between a bank and a
thrift?
Thrifts also refer to credit unions and mutual savings banks that
provide a variety of saving and loans services. Thrifts differ from
commercial banks in that they can borrow money from the Federal
Home Loan Bank System, which allows them to pay members higher
interest.