Office of Thrift Supervision (OTS) Law and Legal Definition

The Office of Thrift Supervision is the U.S. federal agency under the Department of the Treasury. It is the federal bank regulator and supervisor of a dynamic industry of savings associations across the nation. The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. § 1462a). It was established to maintain the safety, soundness and viability of the thrift industry. The office supervises savings associations and their holding companies in order to maintain their safety and soundness. The office encourages the competitive industry that meets America's financial services needs. The Office makes regulations to prevent:

1. unreasonable lending risks;

2. examining and supervising thrift institutions; and

3. enforcing compliance with federal laws and regulations.

The office of the thrift supervision is mainly divided into five main divisions: