Banking standards under the federal reserve system

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Monograph

Identifikator:: 1762969653

URN:: urn:nbn:de:zbw-retromon-142432

Document type:: Monograph

Title:: Banking standards under the federal reserve system

Place of publication:: Chicago

Publisher:: A. W. Shaw Company

Year of publication:: 1928

Scope:: xxxviii, 420 Seiten

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Correlated series for all Member Banks by districts

Collection:: Economics Books

SERIES CORRELATED WITH EARNING ASSETS 159 and discounts to earning assets are positively correlated with high and low ratios of gross earnings, net earnings, total expense, and with each class of operating expense except interest on deposits, for which the correlation is inverse; (2) there is little or no systematic relation between high or low ratios of loans and discounts to earning assets and ratios of demand deposits and of time deposits to total deposits; and (3) with minor excep- tions, the greater the deviation, positive or negative, of ratios of loans and discounts to earning assets from ‘their seven-year average levels, the greater the net deviations of gross earnings, net earnings, and operating expense from their respective levels, That is, in general, whenever and wherever district ratios of loans and discounts to earning assets are above their average level for the period 1919-19235, the corresponding district ratios of gross earnings, of operating expense, and of net earning tend to be above their average levels, the positions being deter- mined by taking an average, algebraically, of the positive and negative deviations relative to their respective levels. It should be remembered that the average percentage deviations of each of the series paired with loans and discounts are nef amounts. If the net amount is positive, this means in general that the majority of the deviations are positive; if it is negative, that the majority are negative. See, for illustration of the frequency grouping in two series, the detail in Table g6. One further word about Table 97. The net percentage dif- ferences for the series correlated with loans and discounts refer in all cases to the number of district-years having the classified percentage dispersions indicated for loans and discounts. For instance, there were 16 district-years which, at some time or other for the years 1919-1925, had ratios of loans and discounts deviating positively from their respective seven-year levels by less than 2.50% —the average being 1.45. The net percentage deviation of these same districts for each of the related series is indicated on the line of the table bearing this amount, the average for gross earnings being + 1.70; for operating expense, +2.36. Moreover, it will be seen that the table provides net average amounts in the various series for the totals of all positive and of all negative deviations with respect to loans and discounts. These summaries, being more general than those referring to the

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