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 3090 bank ratios in the New York and Boston districts, but also for district ratios for the country as a whole. Whatever method of manipulating the data is used, essentially the same results are secured—results seemingly inherent in the economic processes and conditions under which banking is carried on, and about which considerable will be said later. Table 182 summarizes, according to the “Points difference” method,'* the nature and amounts of regression to type for the individual banks in the Boston and in the New York districts, combined, the effect of consolidating the experience being to sharpen the outline of the regression pattern. 3. SERIES CORRELATED WITH RATIOS OF TOTAL EXPENSE TO EARNING ASSETS—MEMBER BANKS IN DISTRICT I—BOSTON In Chapter XV it was shown, for the entire banking member- ship and for classified banks in the First district, that ratios of total expense and of net earnings are positively correlated with ratios of gross earnings. Table 159 contains the frequencies of the paired variables for gross earnings and for total expense ratios, as well as regression measures for ratios of total expense on gross earnings and of gross earnings on total expense. From this table it is apparent that the higher or lower the ratios of gross earnings, the higher or lower those of total expense; and that the higher or lower the ratios of total expense, the higher or lower those of gross earnings. Viewed in either way, a clearly defined functional relationship obtains. But in what way are net earnings ratios related to ratios of total expense? If high or low ratios of total expense and of net earnings accompany high or low ratios, respectively, of gross earnings, and if high or low ratios of gross earnings accompany high or low ratios, respectively, of total expense, then it would appear, other things being equal, that high or low ratios of total expense should be found with high or low ratios, respectively, of net earnings. But the other things are not equal, as is indicated in Table 183, which shows negative correlation to obtain between these series. That is, in general, and other things being equal, if ratios of total expense are high or low, ratios of net earnings 14 That used in securing the details in Tables 170 and 180.

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