ABSTRACT
The deposit-taking system is the simplest institutional mechanism for providing housing finance. People make deposits with deposit-taking institutions which lend those funds back to individuals who wish to borrow to buy a house. In some countries deposit-taking institutions concentrating on housing finance have tended to operate on different circuits from other financial institutions, but increasingly the various financial markets have been integrated and housing finance institutions relying on deposits have been forced into offering a wider range of financial services. The ability to specialize is declining.
