Banking standards under the federal reserve system

Bibliographic data

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 IV. Norms, trends, and correlations of series in the Boston and in the New York districts by Member Banks

Collection:: Economics Books

GROSS EARNINGS IN DISTRICT I 275% ages for all of the banks, do the ratios similarly regress to type? Answer to this question is found in the types and amounts of difference—second year (1925) less than first year (1924)— set forth in the last section of Table 157. It will be seen that, for ratios greater and for those less than the average in the first year (1924), the signs in the column “second year less than first year” are minus (-) and plus (4), respectively, and that the greater the deviation, either plus (+) or minus (-), in the first year, the greater the amounts in the second year. Again, there is regression to types—types in these cases being the averages for the banks in the respective volume (earning assets) groups in 1924 and in 1925. Similar regression occurs when the averages, as standards of reference, are those for banks classified by the sizes of the cities in which they are located. This fact is indicated by the detail in the middle section of Table 157. In the foregoing methods of treating the data, in order to determine the fact and the amounts of regression, deviations have been taken as percentage amounts from three types of averages. Will similar results be secured if, for the individual banks, in the first and second years, the ratios are compared without respect to averages as standards of reference? To answer this question it is necessary only to classify them into suitable groups in 1924, secure an average for each group in this year, and compare each amount with the average for the same banks in 1925. When this is done, as summarized in Table 158 for the banks in each city-size group and for all groups, the answer is unmistakable. The ratios which increase are those which are low; those which decrease are those which are high. Moreover, the lower they are, the more they increase; the higher they are, the more they decrease. To these general rules, for banks by groups without respect to location, there are no exceptions; for those classified by size of city of location, the exceptions are few and occur within only one group. Two methods of study show that ratios of gross earnings to earning assets, for member banks in the Boston district, regressed to type between 1924 and 1925. Is this tendency significant and indicative of the persistent operation of forces, not only as between 1924 and 1925 but for other years as well, making toward the establishment of an equilibrium? It is believed that it is. Let us briefly review our findings with

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