BANKING AFFAIRS

Detailed explanation-1: -Financial institutions fall into two categories: depository and non-depository institutions. Depository institutions include deposit-focused businesses such as credit unions, banks, and savings associations. In contrast, non-depository institutions include brokerage firms and insurance companies.

Detailed explanation-2: -Under the umbrella of banking and finance, the industry has commercial banks-which are consumer facing like Bank of America-as well as central banks-the government entities that regulate the industry and manage monetary policy.

Detailed explanation-3: -Savings and loan (S&L) associations (also called thrifts) are lending and banking institutions specialized in offering residential mortgage loans and accepting savings deposits. S&L associations may also offer other services that commercial banks provide to their customers, such as checks and other types of loans.

Detailed explanation-4: -The most important purpose of savings and loan associations is to make mortgage loans on residential property.