Mutual savings bank

A mutual savings bank is a financial institution chartered by a central or regional government, without capital stock, owned by its members who subscribe to a common fund.

Duncan established a friendly society to create a cooperative depository institution in order to enable his poorest parishioners to hold savings accounts accruing interest for sickness and old-age.

These first savings banks were envisioned as philanthropic endeavors, designed to uplift the poor and working classes.

Since the 1970s, when the industry was deregulated, thousands of mutual savings banks have been converted into stock ownership companies, raising more than $40 billion.

Mutual savings banks prioritize security, and as a result, have historically been characteristically conservative in their investments.