Business of Banking Law and Legal Definition

The business of banking, as defined by law and custom, consists in:

a. the issual of notes, payable on demand, intended to circulate as money, where the banks are banks of issue;

b. receiving deposits payable on demand;

c. discounting commercial paper;

d. making loans of money on collateral security;

e. buying and selling bills of exchange;

f. negotiating loans and dealing in negotiable securities issued by the government, state and national, and municipal and other corporations. [Marvin v. Kentucky Title Trust Co., 218 Ky. 135 (Ky. 1927)].