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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Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

NORMS AND TRENDS IN EXPENSES 101 But the second question asked in the paragraph above requires an answer inasmuch as the marked uniformities given in Table 70 do not necessarily indicate agreement by districts as to the years which are high or low. Specifically, the question is: Do the ratios for the respective types of banks, when paired by districts, agree in giving a year a particular position in the scale of “low,” “moderate,” “high”? The answer is found in Table 71, from which it is apparent that except for 1921, and possibly 1923, the ratios by districts for both groups of banks were high or low, relative to their respective levels, at the same time. Not only, for given years, are the district ratios for the twe types of member banks, in general, similarly placed with respect to their own levels, but the greater the percentage deviation for the national, the greater the percentage deviation for the state banks. That is, if in a given year ratios of total expense to gross earnings for national banks deviate widely, plus or minus, from the district levels, ratios of expense for state banks, similarly measured, deviate widely, the percentage amounts in both cases varying directly with each other. Abnormal conditions making for high or low total expense in terms of gross earnings affect similarly both types of banking institutions. This fact, of course, is to be accounted for partly by the conditions, common to all banks, which affect interest rates—the dominant part of gross earnings—and by compe- tition and regulation, applying as they do to interest on de- posits, interest and discounts on borrowed money, reserve re- quirements, and so on. So much for the relation of the ratios, for the two banking groups—national and state members—to their own seven- year average levels. The ratios, being above or below their own district levels at different times, change from year to year. There are year- to-year oscillations and long- time trends. Are these alike in

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