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 IV. Norms, trends, and correlations of series in the Boston and in the New York districts by Member Banks

Collection:: Economics Books

EXPENSES IN DISTRICTS I AND II 205 year average level tend to increase in the following year, the net percentage amounts of decrease or of increase being positively correlated with the percentage amounts of dispersion from type. It is now shown that similar tendencies for the individual banks in the Boston district are in operation, the ratios of the indi- vidual banks being compared in the successive pairs of years with the yearly averages for all banks. Are these regressions to type due to the method of expressing the deviations and to the fact that the averages change from year to year? They do not appear to be. It is true that the averages change, but the amounts of variation, except as between 1922 and 1923, are small. Moreover, as shown in Tables 161 and 162, the averages are functionally related to volumes of earning assets and to sizes of city of location. Accordingly, let us treat the data in a manner similar to that used to secure the detail in Table 168, but compute the deviations, not in terms of the averages for all banks, but as compared with (1) those in the different city groups, and (2) those in the various volume groups. In measuring regression, we shall later discard all averages as points of departure for computing deviations. It will be found that whatever methods are followed, the results are substantially the same. These appear to be due to the properties of the data rather than to the methods of manipulating them. Table 169 shows the nature and amount of regression to type in the ratios of total expense to earning assets when the indi- vidual bank ratios are expressed as deviations in the first and in the second of each pair of years, 1922-1925 (1) from the respective city-group averages, and (2) from the respective volume-group (earning assets) averages, the results being those secured from aggregating and averaging the amounts found in the respective pairs of years. For purposes of comparison, the total section of Table 168 is also included. As is indicated in Table 169, the three methods of computing the deviations give substantially the same results, both as to the fact and as to the amounts of regression. That is, according to all methods, ratios deviating from type in a given year deviate less widely the following year, the changes in the deviations in the second year varying directly with the percentage amounts of deviation in the first year. This condition obtains not only for

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