savings and loan

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Related to Savings and loan associations: savings bank, Thrift institutions, s&ls

savings and loan

n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. In the early 1980s savings and loans were "de-regulated," allowing them to make loans for speculative land development, removing high reserve funds requirements, and in allowing savings and loans' funds to participate in competition with banks. The result was use of many savings and loans for speculative and dishonest investments, lack of controls, and tremendous losses to thousands of depositors. However, a properly-managed, conservative savings and loan which concentrates on real estate loans guaranteed by the FHA (Federal Housing Administration) and/or sold in the secondary mortgage market can be safe, profitable, and provide a valuable channel for savings into the home finance market.

References in periodicals archive ?
I would like to focus my remarks today on the two major elements of the President's program: (1) the restructuring and reform proposals, and (2) the procedures for dealing with failed savings and loan associations as well as the funding required to cover losses incurred by these institutions.
The regional economic problems were real, but in assessing responsibility it is important to recognize that the oversupply in the real estate market in certain area was at least partially a result of the lending by the savings and loan associations themselves.
Importantly, the FHLBS would be required to apply bank supervisory and accounting standards to the savings and loan associations.
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