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

NORMS AND TRENDS IN NET EARNINGS 145 2. When net earnings in terms of earnings assets and of gross earnings are high or low in a given year, relative to their own district level, the year-to-year trend is, respectively, downward or upward, the net percentage amounts of change varying directly with the percentage amounts of dispersion from normal. That is, measured in both units. net earnings tend to regress to type. (2) National Banks, and State Bank and Trust Company Members Sections 2 and 3(r) of this chapter had to do with compari- sons of the amounts of net earnings in all member banks, by dis- tricts, expressed in units of earning assets and of gross earnings. Section 2 (2) of Chapter VI was concerned with a comparative an- alysis of the ratios of total expense to gross earnings for national banks and for state bank and trust company members, the treat- ment of the district ratios relating to their variations year by year from the district and the country levels, and to the direction and percentage amounts of change from year to year. If the ratios of net earnings expressed as percentages of gross earnings were similarly treated, the actual amounts would be the complements of the operating expenses, and the nature of the variations from the district and country average levels and the directions of change from year to year would be of the inverse type. That is, whenever a plus (+4) or a minus (-) sign was encountered with respect to operating expenses, a minus (-) or plus (+) sign would be found for net earnings. It is unnecessary, there- fore, to discuss the nature of the directions of change from year to year of net earnings for the two groups of banks. If the reader is interested in making such comparisons, he may consult the respective tables for operating expenses in terms of gross earnings, and reverse the signs. While the signs for operating expenses and for net earnings for the respective groups of banks—national and state mem- bers—in terms of gross earnings are opposite in every case, the percentage amounts of change are different. Accordingly, atten- tion is given primarily to the rates of change for the two groups of banks, and for this purpose a graphic representation will most fully serve our purpose. Before considering the chart on which the rates are indicated, it is well to present both the actual ratios

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