Use and Design
Mutual savings banks were designed to stimulate savings by individuals; the exclusive function of these banks is to protect deposits, make limited, secure investments, and provide depositors with interest. Unlike commercial banks, savings banks have no stockholders; the entirety of profits beyond the upkeep of the bank belongs to the depositors of the mutual savings bank. Mutual savings banks prioritize security, and as a result, have historically been characteristically conservative in their investments. This conservatism is what allowed mutual savings banks to remain stable throughout the turbulent period of the Great Depression, despite the failing of commercial banks and savings and loan associations.
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Famous quotes containing the word design:
“If I knew for a certainty that a man was coming to my house with the conscious design of doing me good, I should run for my life ... for fear that I should get some of his good done to me,—some of its virus mingled with my blood.”
—Henry David Thoreau (1817–1862)