Definition

1. Noun:
   • A financial institution that accepts monetary deposits from customers and uses these funds to provide loans or engage in other lending activities: This term refers to a business entity, such as a bank, savings and loan association, or credit union, whose primary functions include safeguarding deposited money and extending credit.

Usage Examples

• Noun:
  • A depository financial institution is a key component of the modern economy.
  • He cashed his paycheck at the local depository financial institution.
  • The funds are insured up to a certain amount at any federally recognized depository financial institution.

Advanced Usage

• The term is often used in formal, legal, or regulatory contexts to distinguish these institutions from non-depository financial entities like investment banks or insurance companies.
• "Chartered depository financial institution": An institution officially authorized by a government to operate.
  • Only a chartered depository financial institution can offer FDIC insurance on deposits.

Variants and Related Words

• Bank (n): The most common and general synonym.
• Savings and loan association (S&L) (n): A type of depository institution historically focused on savings deposits and mortgage lending.
• Credit union (n): A member-owned, not-for-profit depository financial institution.
• Thrift institution (n): A broader term encompassing savings banks and S&Ls.

Synonyms

• Bank
• Banking institution
• Commercial bank (a specific type)

Related Phrases

• Depository institution: A slightly shorter, synonymous phrase commonly used in finance.
• Federally insured depository institution: Specifies that customer deposits are protected by a government insurance program.

Noun

1. a financial institution that accepts deposits and channels the money into lending activities
   • he cashed a check at the bank
   • that bank holds the mortgage on my home