Savings and loan (S&L) institutions provide many of the same services to customers, such as commercial banks, including deposits, loans, mortgages, cheques and debit cards. However, loans and savings associations to place greater attention on the mortgage loans, and banks usually focus on large enterprises and unsecured credit facilities, such as a credit card. The S&LS have also owned and chartered differently than commercial banks, and, as a rule, more oriented to the local market.
Commercial banks can be chartered either at the state or Federal level. The same is true for S&LS, also sometimes called savings banks, savings banks or savings institutions. The office of the Comptroller of the currency (OSS), however, is responsible for monitoring all national chartered commercial banks and s&Ls.
The S&LS could be owned in one of two ways. Under what is known as the mutual model of ownership, with the S&L could be owned by their depositors and borrowers. In addition, the S&L can be created by a consortium of shareholders controlling stake, issued the Charter of thrift.
Commercial banks, on the other hand, owned and managed by a Board of Directors elected by the shareholders. Many commercial banks are large multinational corporations.
By law, S&LS can loan up to 20% of its assets on commercial loans and only half that can be used for lending to small business. In addition, for Federal home loan approval Bank of the borrower, with the s&I should be able to show that 65% of its assets invested in mortgage loans and other consumer related assets. The banking industry has these types of restrictions.
In contrast to the more narrow focus of the S&L mortgage loans, banks typically provide a wider range of financial offers, often including credit cards and asset management and investment banking services. Although commercial banks are allowed to grant mortgage loans, they tend to focus on loans for construction and expansion of regional, national and international business.