Dictionary of Banking Terms: Federal Savings Bank (FSB)
Federal Savings Bank (FSB)
savings bank, chartered and supervised by the Office of Thrift Supervision. Federal savings banks, designated by the letters FSB or FA in an institution's name, were authorized by a 1978 amendment to the Home Owners' Loan Act of 1933. Federal savings banks can put up to 10% of assets in commercial, business, or agricultural loans, and can be chartered as mutual or stockholder-owned institutions.
