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#27525 - 08/09/02 04:43 PM Thrift
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When talking about banks a "Thrift" is included. What is a thrift?

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#27526 - 08/09/02 05:14 PM Re: Thrift
rlcarey Offline
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It's typically referred to as a "Savings and Loan".
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#27527 - 08/09/02 05:39 PM Re: Thrift
John Burnett Offline
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Up in the northeast, in addition to S&Ls, we include cooperative banks (a MA, NH, and RI state version of S&L), and mutual savings banks (some of these are also found in the northwest including AK).
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#27528 - 08/09/02 06:04 PM Re: Thrift
Ted Dreyer Offline
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A thrift is a catch-all term used to describe savings institutions, as opposed to banks. There are so many variations of names (S&L, savings bank, building and loan, savings association) that the term is used to describe any institution regulated by the Office of Thrift Supervision.

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#27529 - 08/09/02 07:16 PM Re: Thrift
John Burnett Offline
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Just to muddy the waters a little, state chartered mutual savings banks in MA are regulated (at the federal level) by the FDIC.
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#27530 - 08/09/02 08:09 PM Re: Thrift
E.E.G.B Offline
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So are some coops, I think. Been a while since I was running around Connecticut/western Mass, but I seem to recall examining Chicopee Coop.
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#27531 - 08/09/02 08:21 PM Re: Thrift
John Burnett Offline
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Right you are, "Babe."

And, for you non-Bay Staters, that's "CHICK-a-pee" not "chick OH pee".
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#27532 - 08/09/02 08:23 PM Re: Thrift
E.E.G.B Offline
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Now teach them how to say Worcester.
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#27533 - 08/09/02 08:28 PM Re: Thrift
John Burnett Offline
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OK,
Main Entry: Worces·ter
Pronunciation: 'wus-t&r
Usage: geographical name
1 city E central Massachusetts W of Boston population 169,759
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#27534 - 08/09/02 08:38 PM Re: Thrift
Pale Rider Offline
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S & L's are regulated by thrift regulators (state or OTS) while state savings banks are regulated by a state regulator and the FDIC. They are both known as thrifts. The FDIC doesn't recognize the difference. A thrift to them is a non-member bank. There are some distict advantages to being a thrift. For instance, a unitary savings and loan holding company is not restrained by any of the rules applicable to bank holding companies. Therefore, a thrift holding company may own race horses or engage in any commecial business. Try that in a bank holding company. There are also tax advantages in being a qualified thrift lender (known as the QTL test). Bankers like to use the labels to their advantage, but there is no practical distinction or advantage to be a commercial bank as opposed to a thrift, other than perhaps the perception that bankers are somehow on a higher intellectual plane. As you can probably tell, I work for a thrift.
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#27535 - 08/09/02 09:03 PM Re: Thrift
John Burnett Offline
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It's interesting to note, however, that there are a lot of thrifts that are trying to shed the thrift "image" and appear to be more full-service. Just as banks started going hot and heavy in residential mortgages in the last 15 years or so, a lot of thrifts have started -- with varying degrees of success -- doing commercial lending. And, although they retain their thrift charters for one reason or another (some are mutual savings banks that don't need to pay dividends -- how's that for a good reason to keep the charter?), they try to hide their thrift identity.

So, Falmouth Co-Operative Bank now calls itself Falmouth Bank, Seamen's Savings Bank uses Seamen's Bank, and Eastern Bank has dropped "savings" altogether from their legal name, while retaining a thrift charter.
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