History

• In the early 1800s, small U.S. cities and towns searched for ways to help citizens pool money to lend for property mortgages. Until that time, home and property ownership had been reserved for society's wealthiest members. After about 100 years, the federal government stepped in and began to regulate banks, especially those that were involved in home lending. Federal savings banks were established as a result.
  
  

Oversight

• Today, the U.S. Office of Thrift Supervision, with main offices in Washington, D.C. and some 1000 employees nationwide, regulates federal savings banks. Each bank submits key data to the OTS at regular intervals and is examined approximately every year to 18 months.
  
  

Difference Between FSB and Commerical Bank

• Federal savings banks and commercial banks operate in similar ways, offering checking, savings, and CD accounts, as well as home loans and home equity products, although some FSBs focus on home lending. Because of this, the customers of FSBs and commercial banks are essentially the same. The Office of the Comptroller of the Currency, a division of the U.S. Department of the Treasury, regulates most commercial banks. Although the regulatory agencies are different, the regulation of financial institutions is very similar. For example, FSBs are limited to using 10 percent of their assets for loans, while commercial banks have different requirements based on the amounts they hold in regular bank accounts.
  
  

Federal Savings Bank Designation

• You probably will not see a sign on the front of the building that identifies a bank as an FSB. But when you go inside and examine the signage, or when you open an account, you will see very clearly that the bank has the letters FSB or FA (Federal Association), after its name. This designation shows clearly that an institution is a Federal Savings Bank.
  
  

Current FSB Assets

• As of December 2009, federal savings banks have assets of approximately one trillion dollars.