Colloquially, a depository institution is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. Under federal law, however, a “depository institution” is limited to banks and savings associations – credit unions are not included.
An example of a non-depository institution might be a mortgage bank. While licensed to lend, they cannot accept deposits.
- ^12 U.S.C. 1813©.
- ^“nondepository financial institution”. TheFreeDictionary.com. 2014. Retrieved 2014-07-28.