Building And Loan Associaiton

AAA

DEFINITION of 'Building And Loan Associaiton'

It is a depository financial institution that is federally or state chartered, that specializes in collecting savings deposits from customers and investing it in residential mortgage loan. Building and Loan Associations are usually mutually held, meaning that depositors and borrowers have the ability to direct the financial goals of the organization.

Also referred to as "savings and loan association."

INVESTOPEDIA EXPLAINS 'Building And Loan Associaiton'

The difference between a savings bank and a building and loan association is that savings banks generally concentrate on commercial lending to help businesses and finance ventures or lending that is secured by other items like credit cards. Building and loan associations, on the other hand, tend to focus on residential mortgage lending and promoting home ownership.

RELATED TERMS
  1. Commercial Bank

    A financial institution that provides services, such as accepting ...
  2. Federal Funds

    Excess reserves that commercial banks deposit at regional Federal ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
  5. Savings

    According to Keynesian economics, the amount left over when the ...
  6. Savings And Loan Crisis - S&L

    One of the largest financial scandals in U.S. history, the Savings ...
Related Articles
  1. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  2. When Financial Crisis Strikes The Bank ...
    Budgeting

    When Financial Crisis Strikes The Bank ...

  3. Getting A Loan Without Your Parents
    Retirement

    Getting A Loan Without Your Parents

  4. Home-Equity Loans: The Costs
    Options & Futures

    Home-Equity Loans: The Costs

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center