Organization

Private banks are organized in the same manner as ordinary partnerships. They may belong to an individual or a firm.

Functions

The business of private banks varies in different localities. In many cases they possess the principal functions of national banks; in other cases their attention is directed only to special features of banking such as the buying and selling of foreign exchange, stocks and bonds, etc.

Protection To Creditors

In a few states private banks are restricted in their operations by statute, in which case they are subject to the inspection of state officials, but usually their operations are regulated and restricted only by the common laws of business.