The Office of Thrift Supervision (OTS) refers to a regulatory agency operating within the United States. This agency was established in 1989 under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). OTS was assigned responsibility for the supervision of federally chartered thrift institutions, including savings and loan associations and savings banks. It functioned as an independent bureau under the Department of the Treasury, serving as the primary federal regulator for these financial institutions.
The main objective of the Office of Thrift Supervision was to promote the safety and soundness of the thrift industry and safeguard depositors' funds. To achieve this, OTS was responsible for conducting examinations, inspections, and ongoing supervision of thrift institutions. This included monitoring their capital adequacy, asset quality, management, earnings, liquidity, and compliance with applicable laws and regulations.
Furthermore, the OTS played a crucial role in the issuance of charters for new thrift institutions and in the approval of mergers, acquisitions, and other significant changes within the industry. It also focused on consumer protection, ensuring that thrift institutions were committed to fair lending practices and providing consumers with reliable financial services.
However, in 2010, the OTS was dissolved as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its responsibilities were transferred to other regulatory agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
