WHAT IS Thrift Institutions Advisory Council

The Thrift Institutions Advisory Council (TIAC) provides advice and professional opinions to the Federal Reserve regarding thrift institutions, primarily mutual savings banks, but also credit unions and savings and loan associations. It was created in 1980 by the Board of Governors of the U.S. Federal Reserve in response to a perceived lack of accurate advice and information on thrift institutions and other establishments which derive the majority of their funds from the savings of the public. The TIAC does not make laws or regulations, but can recommend actions to the Federal Reserve Board.

BREAKING DOWN Thrift Institutions Advisory Council

The Thrift Institutions Advisory Council (TIAC) was established by the Board of Governors of the Federal Reserve through the Monetary Control Act of 1980. It was created to facilitate communication between the Federal Reserve Board and the savings industry and to guide the Federal Reserve in taking actions related to the savings industry.

The Thrift Institutions Advisory Council is not a statutory body. This means that it does not create statutes, legislation, or regulations on its own, but rather acts in parallel with several other advisory councils in providing first-hand advice and concerns from representatives of institutions with close relationships with the Federal Reserve. The TIAC meets three times a year with the Board of Governors of the Federal Reserve in Washington, D.C., at this summit, both groups discuss matters of immediate and future concern for the savings industry. The advice of the TIAC is considered pertinent because its members are representatives of mutual savings banks, savings and loan associations, and credit unions, and are operating under the regulations and actions of the Federal Reserve.

Composition of the Thrift Institutions Advisory Council

The Thrift Institutions Advisory Council is made up of twelve members, each of who serve for two-year terms. Each member is limited to one term, a rule which is intended to keep the membership body fluid and prevent nepotistic or stagnant conditions on the council. Some analysts feel that lack of term limits on advisory and corporate boards contributed directly to the market crash of 1929 and the Great Depression. These TIAC members, who are executives of thrift and savings organizations, are appointed and approved by the Federal Reserve Board of Governors itself. It acts in parallel with two other advisory councils, including the Federal Advisory Council, which advises the Federal Reserve and the Board of Governors in a general sense, and the Consumer Advisory Council, which advises on the interests of credit consumers, and is the largest advisory council.