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E. Regulation and Monitoring
1. Classification, Regulation, and Insurance
The banking industry includes both commercial banks and
thrifts. While there is some overlap, commercial banks generally
provide a wider range of banking services than thrifts, whose
principal mission is financing home ownership. There are also
some differences in ownership. Commercial banks are always owned
as stock companies, while thrifts may be stock-owned or mutually
owned. Commercial banks and stock-owned thrifts are frequently
owned by a bank holding company owning one or more institutions.
Although most thrifts are mutually owned, stock companies account
for more than two-thirds of the assets of thrifts.
Both banks and thrifts can be federally or State chartered
and are generally insured by either the Bank Insurance Fund (BIF)
or Savings Association Insurance Fund (SAIF) of the Federal
Deposit Insurance Corporation (FDIC). BIF insures all federally-
chartered commercial banks, most State-chartered commercial
banks, and some State-chartered thrifts. SAIF insures all
federally-chartered and some State-chartered, thrifts. Since
July 1, 1991, SAIF- and BIF-insured institutions have paid the
same level of deposit insurance premium (0.23 percent of
deposits).
On the valuation date, Peoples was chartered by the State of
Indiana with the powers of a commercial bank and was BIF-insured.
As a result, Peoples was subject to regulation at the Federal
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