Subject to governmental authority - National or State, according to its charter - the management of any bank is vested in its board of directors. Such directors are elected by the stockholders. The directors elect the officers, president, vice-president, cashier and assistant cashier, who are the executive heads of the institution and are charged with the duty of administering its affairs. The number of vice-presidents and assistant cashiers depends upon the size of the bank. The directors may also appoint committees - such as a discount committee, an executive committee, and an examination committee - that the business of the bank may seem to require. According to the character of their duties and responsibilities, bank officers and employees may be classified as (1) executives, (2) tellers, (3) bookkeepers. Whenever it becomes necessary, on account of volume of business, to divide the work in a bank into divisions, each employing a group of clerks, such divisions are organized into departments each having a department head, who is usually a teller, a head bookkeeper, or perhaps a junior officer. In the very large banks the executive staff is itself organized into groups, and there may be a vice-president and one or two assistant cashiers in charge of each important department. The work of a department in a large bank is nothing more nor less than the work of a single man in a small bank apportioned among several men. The departments into which a medium sized bank is ordinarily divided are as follows:
(1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits, distributes checks to bookkeepers and other departments, prepares exchanges for clearing houses, and turns cash over to the paying teller at end of day.
(2) Transit Department (Teller) - The transit department may be a subdivision of the receiving teller's department and was formerly known by other terms, such as correspondence, foreign check, miscellaneous check or country check department. This department assorts checks and other cash items payable out of town, indorses them and lists them on letters addressed to other banks. It gives totals of outgoing or remittance letters to general ledger bookkeeper at end of day. This department often keeps the records of exchange charged on out-of-town checks, and of delayed credits on interest balances made necessary because of uncollected funds deposited.
(3) Paying Teller's Department (Teller) - Pays or certifies checks, is in charge of the signature book or cards bearing the authorized signatures of all depositors, ships currency, is in charge of the vault cash, and makes up payrolls.
(4) Note Teller's Department (Teller) - Collects notes and drafts due at the bank or elsewhere in the city. It is usually in charge of the runners or messenger department, which is a subdivision, and it usually receives deposits made by other banks, and may perform the functions of a mail teller.
(7) Credit Department (Executive) - Secures and collects information relating to borrowers, checks statements submitted by them, and is in charge of credit files, which contain information as to the reliability, business habits and financial strength of borrowers.
(8) Analysis or Statistical Department (Executive) - This department is usually found in city banks. It analyzes the accounts of depositors to determine which are profitable and which are losing accounts, makes monthly reports to officers, is in charge of statistics relating to the bank's accounts and matters in which the bank is particularly interested. It is closely related to the transit department.
(10) Country Bank Account Department (Bookkeepers) - This department is confined to city banks. It keeps the accounts of other banks.
(11) Individual Ledger Department (Bookkeepers) - Keeps the records of the balances of individual depositors and figures interest on accounts. It may be subdivided as to kind of accounts (savings, dealers), in addition to ordinary alphabetical division, and may balance pass-books or there may be a separate department for this purpose using the statement system.
(12) Auditor's Department (Executive) - This department is responsible for the settlement of the various departments, reconciles the accounts with other banks, and certifies interest calculations.
In addition to these departments, there are others to be found either in very large banks or even in small banks operating special features. Among the first might be noted the coupon department, exchange department, purchasing department, filing department, interest department, new business department, etc., all of which terms are self-explanatory. Among special departments may be mentioned the foreign exchange department, the bond department, safety deposit department, special deposit department (securities and valuables stored with the bank, but not placed in private boxes). In trust companies there is the trust department, which may have a complete independent organization of its own, with officers, bookkeepers and other clerks. This department has charge of the trust accounts.