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

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Norms and trends in individual series for all Member Banks, by districts

Collection:: Economics Books

BANKING STANDARDS earnings level, the years which were high as well as those which were low were in general the same in all districts. Bo Norms 1. While the typical or modal ratios of gross earnings to earning assets for all districts for the years 1919 to 1925 fell within the group 6.25-6.75, the weighted arithmetic mean ratio was 6.58. The range extended from 5.44 for Philadelphia in 1919 to 8.85 for Dallas in 1921, but 69% of the ratios fell between 5.75 and 7.25. 2. The ratios were generally low, relative to the respective dis- trict averages for the seven years, in 1919, 1920, 1923, 1924, and 1925; they were universally high, measured in the same manner, in 1921 and 1922. Trends 1. Ratios of gross earnings for all member banks in each dis- trict and in all districts tended to increase between 1919 and 1921 and to decrease between 1921 and 1925. To this generalization there are exceptions in 1924, as compared with 1923, for the country as a whole, and in several pairs of years for individual districts. In spite of these exceptions, however, the trend is un- mistakable. 2. From year to year and over the period 1919-1925, the rates of change in the ratios in the various districts, while differing from district to district, are much alike. The greatest rise came be- tween 1920 and 1921 for all but three districts; the year of great- est fall for ten of the twelve districts came between 1922 and 1923. 3. District ratios which are high in a given year, relative to the respective district levels established by the seven-year period, tend in the following year to fall, and those which are low tend to rise, the net percentage amounts of change varying directly with the percentage amounts of dispersion in the first year. Regres- sion to type is general, and probably finds its explanation in the fluidity of capital, banks individually and collectively being free, within certain common restrictions, to distribute their assets be- tween loans and investments in keeping with the demand for and supply of funds and the consequent ruling interest rates.

Access restriction

Copyright

fullscreen: Banking standards under the federal reserve system

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation