Thrift Bank Law and Legal Definition

A bank mainly focused in taking deposits for checking and savings account and making home mortgages is a thrift bank. Usually, thrift banks have access to low-cost funding from Federal Home Loan Banks. A thrift bank allows higher savings account yields to customers and increased liquidity for mortgage loans. Thrift Banks tend to be community-focused. Thrift banks are better aware of local markets, and it is easier to obtain a loan from them. Thrift Banks are regulated by the Office of the Thrift Supervision regulates. Main purpose of a thrift bank is to take deposits from consumers and make home mortgages. Thrift banks derive fund from customer savings accounts.