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.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.