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 EXPENSES 231 192 5—the following other series are high or low: loans and dis- counts to earning assets, time deposits to total deposits, time de- posits to earning assets, gross earnings to earning assets, and total expense to gross earnings. In general, similar direct rela- tions were found between these series when the dependent variable was total expense and the independent variables were each of the above series.! (2) In years and districts in which ratios of total expense to earning assets are high or low, ratios of investments to earning assets are low or high. A similar relation was found be- tween these series when ratios of total expense to earning assets were the dependent variables and ratios of investments to earn- ing assets were the independent variables. (3) The relations between variable ratios of total expense to earning assets and variable ratios of net earnings to earning assets are neither mark- edly direct nor inverse—they are mixed.2 (4) Large deviations in the ratios in each of the series tend to be associated with large deviations in those of total expense, irrespective of the nature of the association—positive or negative—between the series with respect to signs of deviation. To this rule, there are some doubt- ful cases, as shown in Table 138. The reader should remember that it is the net position and percentage deviation in each of the series which is measured for variable amounts of deviation in total expense. The averages shown in Table 138 should not be taken as indicating, for in- stance, for the 13 district-years in which the ratios of total expense to earning assets were between 5% and 10% above their respec- tive district averages for the period 1919-1925, that all of them had ratios of investments to earning assets below their respective district averages. The net percentage amount of dispersion, - 8.99, indicates that the general tendency measured in this man- ner is for the ratios to be below the district levels. The same line of reasoning applies to each of the other dispersion classes, the amounts in the columns of Table 1 38, relating to ratios of investments to earning assets, of gross earnings to earning assets, and so on, summarizing the net tendency for all dispersion classes. In order that the full meaning of such figures shall be thoroughly 1See Tables 97, 116, 121, and 131. 2 For a measurement of the net deviations in total expense associated with vari- able amounts of net earnings for member banks in District I, see Table 183.

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