Having surveyed the entire field of banking, consideration will be confined to the various aspects of the commercial bank. Its organization will first be analyzed with particular reference to differences and similarities to the ordinary business enterprise. The three types of business organization - the individual, partnership, and corporation - are all found in the field of banking. Any person or group of persons may engage in banking in the same manner as in an ordinary private business such as retailing or manufacturing. Although the business of banking, by reasons of its semipublic nature, is placed under certain governmental regulations, it is not confined by law to the corporate form of organization. But as most banks are chartered institutions, it is necessary to study them particularly from the corporate point of view.

Chartered banks share in all the advantages derived from being organized as corporations. The existence of the bank is practically continuous, for it receives a charter which generally allows it a fife of twenty years, and this term is usually extended by mere appli-cation to the proper authorities. The feature of the limited liability of owners is especially attractive in banking where the element of risk is heavy. Also the issue of shares renders possible the raising of capital in large amounts.

On the other hand, corporate organization carries with it certain disadvantages which are especially onerous in the case of banks. Heavy taxes must be paid to the federal, state, and local governments. In addition, both national and state supervisory officials several times within the year demand detailed reports concerning the financial condition of the banks, and they must also be prepared for government examiners who may visit them unexpectedly and conduct searching investigations of all operations.