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 III. Correlated series for all Member Banks by districts

Collection:: Economics Books

ag BANKING STANDARDS TABLE 152 NATURE OF CORRELATION IN PERCENTAGE DEVIATIONS AND YEAR-TO- YEAR CHANGES IN DIFFERENT SERIES PAIRED — — SERIES CORRELATED Independent Variables Dependent Variables Gross Earnings to Earning Assets. ................. Net Earnings to Earning As- ante Net Earnings to Earning As- SOLS. on ov wis 8 mis 8 in 8% win Gross Earnings to Earning Accate Total Expense to Earning Assets, conn civiirinin Net Earnings to Earning Assets. ei Net Earnings to Earning Assets. ..........co0nn. Total Expense to Earning Assets *Low. NATURE OF CORRELATION Differ- | ences from District | Averages Changes from Year to Year Differ- ences from Country’s Yearly Averages | Negative* ! None None | Positive Negative® Positive | None | None - neni. earnings and variable total expense (positively correlated) cor- related with variable net earnings. It is apparent from this table that the probable causal order leading to high or to low net earn- ings runs from gross to net earnings. rather than from total expense to net earnings. Now, from what has been said, it is known that net earnings are positively correlated with gross earnings and indifferently correlated with total expense. But ratios for both of these series are positively correlated with loans and discounts; while those for total expense are indifferently correlated with deposits. Accordingly, it is of interest to observe the relations, if any, between loans and discounts and deposits and net earnings. The relations are given in Table 153. In view of the relations between variable ratios of loans and discounts and of variable ratios of deposits to earning assets and ratios of net earnings, as disclosed in Table 153, it is desirable again to set up the simple relation between gross earnings, total expense, and net earnings. This runs as follows: gross earn- ings—operating expenses=net earnings. Quantitatively, the ratios may stand at any figures, but the ones which are used for purposes of illustration are 6—4=z2. It has been found that relatively large ratios of loans and dis- counts accompany relatively large ratios of gross earnings. Accordingly, if 6% is the average gross earnings ratio for series with average ratios of loans and discounts to earning assets,

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