A depositor's account may be built up by cash, credit instruments, or by loans. The disposition of the cash by the paying teller, and the handling of credit instruments by the collection departments, have already been considered, and it now remains to describe the manner in which the bank grants loans to its customers. This method depends largely upon whether the loans are secured or unsecured. The bank may insist that the borrower pledge some form of property as security for the final payment of his obligations, or it may waive any collateral, and base its loan to the customer entirely on the general ability to repay. Before extending an unsecured loan, a bank must first assure itself of the financial standing and business record of the prospective borrower.

The collecting, analyzing, and fifing of such information are performed by the credit department, which is often divided into several divisions, each specializing in a particular operation. From all possible sources the investigation division gathers information regarding borrowers. These findings are assembled and presented in classified credit folders. From these reports the officers determine the fine or maximum limit of credit to be extended by the bank to each borrower. The credit folders are continually handled by the investigation division, which adds current information, and by the analysis section, which as a result revises credit fines. It is, therefore, essential to maintain a filing system which can furnish quick and convenient access to the credit records. Another division of the credit department conducts the large volume of correspondence with other banks and business houses with which credit information is interchanged. Another operation of the credit department is to buy notes and acceptances for country correspondent banks seeking to invest surplus funds. A "new business" division is of value in explaining the services of the bank to prospective customers and thus gaining additional accounts. Thus a complete credit department includes investigation, analysis, filing, correspondence, commercial paper, and new-business divisions.