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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

SERIES CORRELATED WITH DEPOSITS 175 2. SERIES CORRELATED WITH RATIOS OF DEMAND DEPOSITS (1) Ratios of Demand Deposits to Earning Assets Table 106 gives, for gross earnings, total expense and net earnings, and so on, the net percentage differences of the ratios for the respective series from their own seven-year district levels, corresponding to the nature and percentage amounts of disper- sion of demand deposits in terms of earning assets. It shows, among other things, that (1) on the whole, when demand deposits, as measured, were above their district levels, gross earnings and total expense were below and net earnings were above their respective district levels; (2) when demand deposits were below such positions, gross earnings and total expense were generally above and net earnings generally below their corresponding aver- age levels; and (3) the greater the deviations of demand deposits, the greater are the net deviations, direct or inverse, in the paired series. That is, districts having relatively high demand deposits had high net earnings and low gross earnings and total expense; and those having low demand deposits had low net earnings and high gross earnings and total expense—all amounts being expressed in terms of earning assets. There are, of course, conditions other than variable amounts of demand deposits which determine those of gross and net earnings and total expense. If the percentage amounts by which the ratios for each of these series deviate from their seven-year district level are determined (account being taken of the paired positions of demand deposits and of loans and discounts, each expressed in terms of earnings assets), it is found, as summarized in Table 107, that (1) high demand deposits and low loans and discounts are associated with the lowest gross earnings and total expense; (2) low demand deposits and high loans and discounts accompany the highest gross earnings, total expense and net earnings; and (3) variations in the amounts of loans and dis- counts seem to have more influence than variations in amounts of demand deposits on ratios of net earnings, the lowest ratios occurring, however, when both demand deposits and loans and discounts relative to earning assets are below their respective district levels. But the ratios of demand deposits, as of other series, change

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