As soon as 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 division is organized into a department 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. For example, the receiving rellet in a five-man bank will take the deposit, count the cash, examine the checks, assort them as to place payable, enter them upon the proper records and make a settlement or proof at the end of the day. In a large bank each of these operations is performed by a different man or group of clerks under the direction of the receiving teller, who is head of the department. It may be that he himself will do very little if any of the detail work. He becomes the manager. Frequently we find a department within a department, as for example, the money department within the paying teller's department.
The ordinary departments, classified as to group, may be described as follows:
Paying Teller's Department (Teller): Pays or certifies checks. In charge of the signature book or cards bearing the authorized signatures of all depositors. Ships currency. In charge of the vault cash and reserves.
Receiving Teller's Department (Teller): Receives deposits. Distributes checks to bookkeepers and other departments. Prepares exchanges for clearing house. Turns cash over to the paying teller at end of day.
Note Teller's Department (Teller): Collects notes and drafts due at the bank or elsewhere in the city. Usually in charge of the runners or messenger department, which is a subdivision.
Collection Department (Teller): Collects notes, drafts, and other "time" items when payable out of town. Credits accounts of depositors when collections are advised paid.
Transit Department (Teller): This is a subdivision of the receiving teller's department and may be known by other terms, such as correspondence, foreign check, miscellaneous check or country check department. Assorts checks payable out of town, endorses them and lists them on letters addressed to other banks. Gives totals of outgoing or remittance letters to general ledger bookkeeper at end of day.
Loan or Discount Department (Executive): Receives notes submitted for discount or makes loans. Figures discount and interest. Has charge of collateral securing loans.
Credit Department (Executive): Secures and collects information relating to borrowers. Checks statements submitted by them. In charge of credit files which contain information as to the reliability, business habits and financial strength of borrowers.
Analysis or Statistical Department (Executive): Usually found in city banks. Analyzes the accounts of depositors to determine which are profitable and which are losing accounts. Makes monthly reports to officers. In charge of statistics relating to the bank's accounts.
Individual Ledger Department (Bookkeepers): Keeps the records of the balances of individual depositors. May be subdivided as to kind of accounts (savings, dealers), in addition to ordinary alphabetical division. May balance pass-books or there may be a separate department for this purpose using the statement system. Figures interest on accounts.
General Ledger Department (Bookkeepers): Keeps the general or control accounts of the bank. Makes up the bank's statement of condition.
Country Bank Account Department (Bookkeepers): Confined to city banks. Keeps the accounts of other banks, usually consisting of reserve accounts.
Auditor's Department (Executive): Responsible for the settlement of the various departments. Reconciles the accounts with other banks. 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 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. All these various departments will be explained in more detail in separate chapters.