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

NET EARNINGS IN DISTRICT I k3 4 centrate generally become smaller as the city and the volume groups increase in size. Similar conditions obtain in each of the years. It is apparent, therefore, that to present the average ratios by years and by groups of banks, as is done in Table 185, is not to disclose the variations in the net earnings of these insti- tutions. It is because of this fact that the details in Table 186 are presented. In Table 183, it is seen that the average ratios for the banks, as grouped, increased between 1924 and 1925. Was this tendency general for the banks individually, and is it in any way related to the size of the ratios in 1924? The fact of variation is evident from the details in Table 186. Some are high, some “average,” and some low. Did those falling within these several categories increase between 1924 and 1925? To answer this question, stand- ards of reference from which to measure the amounts of differ- ence from type, and measures of change must be selected. Let us use those already employed in the analyses of gross earnings and of total expense ratios, follow through the processes of analysis, and observe the results. These may then be used as bases for certain generalizations. A convenient and logical standard is the average ratio for the 408 banks® in each of the years 1924 and 1925. With such amounts as points of departure for measuring dispersion, the process of determining the types and amounts of change between £924 and 1925, used above in the analysis of gross earnings ratios, may be employed.* The results of carrying it out are shown in the first section of Table 187. But the average ratio for all of the banks in a given year does not agree with the yearly averages for the banks in the respective city and volume groups. Indeed, the averages for the banks in four of the five city groups in 1924, and in three of the five in 1925, are less than the corresponding yearly averages for all of the banks. Accordingly, since banks by city groups have different yearly average ratios, these may be taken as standards of refer- ence with which to compare, group by group, the ratios of the individual banks. If this is done, and if the yearly ratios are treated in a manner similar to that used immediately above, the 8 For 1924, two of the 410 banks had total expenses exceeding gross earnings. t See page 273.

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