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 III. Correlated series for all Member Banks by districts

Collection:: Economics Books

SERIES CORRELATED WITH EARNING ASSETS 161 classified percentage deviations, smooth out the peculiarities from group to group and define in broader terms the relations between the corresponding deviations. For many purposes, they are more significant than are those for the percentage groups. There are, however, other ways in which the ratios in various series may be paired. While district ratios in related series may, at the same time, be above or below their respective average levels, they may or may not move in the same direction from year to year, and the rate of change in one series may bear little or no relation to that in another. Let us determine the percentage amounts of increase and of decrease from year to year in the ratios of loans and discounts to earning assets and, in a number of related series, pair each series of deviations with those of loans and discounts, year by year and district by dis- trict, according to the direction and the amount of change, summarize the changes by the use of averages, and observe the results secured. Carrying out this series of steps gives the results shown in Table 98, from which it is seen that (1) when ratios of loans and discounts to earning assets were increasing, the net direction of change was an increase in each of the series, except demand deposits to total deposits; (2) when they were decreas- ing, the net direction of change was a decrease in all series except time deposits, salaries and wages, and interest on deposits; (3) the greater the increase in ratios of loans and discounts, the greater the net change in the same direction, in time deposits, gross earnings, net earnings, and interest on borrowed money; and (4) the greater the decrease in ratios of loans and discounts, the greater the net decrease in gross earnings, net earnings, total expense, interest on borrowed money, taxes, and “other expenses.” In general, increasing ratios of loans and discounts to earning assets are accompanied by increasing ratios in all but one of the series with which they are paired; when they are decreasing by decreasing ratios in all but three of the series. High and low ratios of loans and discounts, relative to district levels, and increasing and decreasing ratios of loans and discounts from year to year, respectively, are positively correlated with high and low and increasing and decreasing ratios of gross earnings, of total expense, and of net earnings. This much is apparent from material already submitted. Let us see what effect increasing and decreasing ratios of loans and discounts

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