For a simple example, a group of people, say 10, each contributes100000 US dollars, and a * * * raises100000 US dollars as shareholders' equity, then absorbs190000 US dollars in deposits, and then issues loans of about 20 million US dollars on this basis.

The savings and loan association is a non-bank financial institution supported and supervised by the US government, which specializes in savings business and housing mortgage loans. Its motive is to provide financing for the purchase of houses, and the loans should be secured by the purchased houses. Its forms are mutual aid system and joint-stock company system. Mutual assistance means that if there is no tradable shares, the depositor is the owner. In order to improve the ability of the savings and loan association to expand the sources of funds, legislators legislated to promote the transformation from mutual aid system to joint-stock company system. Like banks, savings and loan associations can be registered at the federal or state level, but they must comply with the reserve requirements of the Federal Reserve.