Hoiusepankad

Hoiusepankad, also known as savings banks, are a type of financial institution that traditionally focused on serving individuals and small businesses. Unlike commercial banks, their primary goal was not profit maximization but rather to promote savings and provide access to financial services for a broader population. Historically, many savings banks were founded with cooperative principles, where depositors were also considered members or shareholders, sharing in the success of the institution.

The operational model of a hoiusepank typically involved collecting deposits from individuals and then using these funds to provide loans, particularly for mortgages and personal needs. Their community-oriented approach meant they often had a strong local presence and a deep understanding of the financial needs of their area. Many hoiusepankad played a significant role in financing homeownership and supporting local economic development.

Over time, the distinction between savings banks and commercial banks has blurred in many regions due to regulatory changes and market competition. Some savings banks have demutualized, converting into stock corporations, while others have merged with larger banking groups. Despite these changes, the legacy of the hoiusepank as a customer-focused, community-oriented financial institution remains. The term is still used in some countries to describe banks that retain a focus on retail banking and savings products.