A problem which should be considered as distinctly associated with this matter of type of banking system is, however, that of the discount market. In studying the discount market we are in position to pass beyond the view of banking organization, which regards it as merely a matter of law or technic, and to analyze a much more fundamental problem in connection with banking evolution. This is the scope of operations of the bank. Here we may likewise recognize some three distinct types or styles of banking system, as follows:

(1) The heterogeneous banking system in which a bank is authorized to perform practically any kind of business that it may choose;

(2) The specialized banking system in which different kinds or types of institutions are recognized and are defined by law;

(3) The organized banking system in which the different classes or groups of banks are definitely related to one another and are given a specified claim upon or connection with one another.