How do you define the word bank? If you were like most of us, you probably would say a bank is a large room with a long counter that has tellers standing behind it giving out and receiving money. On one end of the banking floor you may visualize various women and men occupying large polished desks. Usually these employees deal with the bank's clients. Some of their responsibilities may include establishing the rental of a safe deposit box, describing the bank's possible role in setting up a trust, taking care of all documents concerning the consideration and granting of mortgages, discussing loan applications, and opening new accounts. At another end of the banking floor, across from those employees seated at the desks, there may be a huge steel door that leads to a safe deposit vault where customers can rent individual lock boxes to keep jewelry, valuable papers, and other items.
This is what the word bank means to many of us, but like the tip of the iceberg, there is much more to it than you may think. For example, the quick and efficient way that the tellers handle each transaction is possible only because there are scores of people working behind the scenes. Every time a customer hands a deposit to a teller, that transaction must be recorded on the customer's account as well as on the bank's own accounting records. Similarly, whenever a teller counts out those crisp green bills and gives them to the customer who is cashing a check or withdrawing funds, another entry must be made on the customer's account as well as on the bank's books. These entries reflect the changes in both the customer's and the bank's cash positions. Multiply these deposit and withdrawal transactions by the hundreds or thousands of customers who come to the bank and its branches each day, and you realize the enormity of the task and why it calls for many other employees whom the public never sees.
Likewise, there is much more involved than meets the eye when a customer applies for a loan of $300 or for a $100,000 mortgage. The bank's lending officer must first research the customer's reliability and financial condition before deciding whether it would be safe to lend the money. Once a mortgage is granted, systems must be set up to make certain the regular monthly payments, taxes, and insurance are paid on time. In the case of banks that specialize in making thousands of small loans, imagine the tremendous amount of behind-the-scenes activity!
