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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Ready to get started?

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Ready to get started?

Book a demo

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Savings and Loan Crisis

Savings and Loan Crisis

Glossary
Banking

Savings and Loan Crisis

The US Savings & Loans (S&L) crisis of the 1980s to early 1990s was a domestic crisis affecting Savings & Loans institutions. These are retail financial institutions, also known as thrifts, accepting retail deposits and extending retail mortgages and other forms of consumer finance. The elongated crisis led to the collapse of more than a thousand institutions. The crisis was caused by multiple factors over many years: A negative interest-rate spread and chronic asset-liability mismatches at the beginning of the 1980s as interest rates spiked to tame high inflation. Thrift institutions had Federally-imposed caps on deposit rates so could not offer competitive rates, leading to huge deposit outflows. As rates headed higher, thrifts’ short-term deposit funding ended up being more expensive than their long-dated fixed-rate mortgages. Deregulation widened the scope of activities that S&Ls were allowed to engage in and altered other aspects of the industry at a time of reducing regulatory oversight. Lack of regulatory action to shut insolvent thrifts, which then super-charged deposit rates and offered other incentives to attract deposits, particularly jumbo and brokered deposits, in attempts to grow out of their financial distress. This led distressed S&Ls to make reckless investments particularly in real estate to generate the returns to pay the high deposit rates. Reckless management lacking proper internal controls.

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