Depository Institution
A depository institution is a financial institution that accepts deposits from the public and provides services such as savings accounts, checking accounts, and certificates of deposit. Depository institutions are regulated by the government and are subject to certain rules and regulations. Examples of depository institutions include banks, savings and loan associations, credit unions, and mutual savings banks.
History of Depository Institutions
Depository institutions have been around for centuries, with the first banks appearing in the Middle Ages. These early banks were established to provide a safe place for people to store their money and to facilitate the exchange of goods and services. Over time, the role of depository institutions has evolved to include providing loans, investments, and other financial services.
In the United States, the banking system is regulated by the Federal Reserve System, which was established in 1913. The Federal Reserve System is responsible for setting monetary policy, regulating banks, and providing financial services to the public. The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to insure deposits in banks and other depository institutions.
Table of Comparisons
| Depository Institution | Banks | Savings and Loan Associations | Credit Unions | Mutual Savings Banks |
|---|---|---|---|---|
| Regulated by | Federal Reserve System | Federal Home Loan Bank System | National Credit Union Administration | State Banking Departments |
| Insured by | FDIC | FDIC | NCUSIF | FDIC |
Summary
Depository institutions are financial institutions that accept deposits from the public and provide services such as savings accounts, checking accounts, and certificates of deposit. These institutions are regulated by the government and are subject to certain rules and regulations. Examples of depository institutions include banks, savings and loan associations, credit unions, and mutual savings banks. For more information about depository institutions, visit the websites of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
See Also
- Savings Account
- Checking Account
- Certificate of Deposit
- Federal Reserve System
- Federal Deposit Insurance Corporation
- National Credit Union Administration
- Money Market Account
- Interest Rate
- Loan
- Investment
