Depository institutions

Schweser identifies 3 primary types of depository institutions: (1) Commercial banks (2) Thrifts and thrift institutions (i.e. saving banks, credit unions, savings and loan associations). (3) Money market mutual fund I can’t see the difference between (1) and (2) as in the reading. Can anyone enlighten me? Thanks.

2’s service retail customers – you and me. 1’s service companies.

not much difference now as everyone and their brother is trying to be a “full service” financial inst., except you’ll find thifts holding predominantly mortgages on their balance sheets and Commercial banks, as the name suggests, mostly commercial and industrial loans. In the 80’s Commercial loans could only accept checking deposits and thrifts could only accept savings deposits

I think (but not 100% sure) that it also has to do with the governmental body that is responsible for oversight, and thus the regs that they have to follow

I don’t understand number 3. Is this like every other fund regulated under the Investment Company Act, but only maturities of under 1 year? There are many types of money market funds out there, and hence, I don’t think of them as despository institutions.

Thanks for all the answers. @BosyBillups: the reading specifies this type (3) as the fund deposited by a group of investors. So they classify it as depository institutions.