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

NET EARNINGS IN DISTRICT I 319 The first stage in the process secured measures of disper- sion for ratios in 1924 which were distributed above or below their averages (those for all banks, those for banks classified by size of city of location, and those for banks classified by amounts of earning assets) by different percentage amounts. The second stage, for banks with classified percentage amounts of dispersion from their average in 1924, determined the net average amount of dispersion from their average in 1925. If ratios of net earnings are above or below their average in 1924, they are in general above or below their average in 1925. But some of those above the 1924 average are below, and some of those below the 1924 average are above their 1925 average. Accordingly, when, for each dispersion group in 1924, the average amount of deviation in that year is compared with the net average disper- sion in 19235, it is found that the dispersion is less in 1925 for ratios which were either above or below their average in 1924. The amounts of difference in dispersion, in the two years, vary directly with the degree of dispersion in 1924. Ratios which are above as well as those which are below the average in 1924 tend to regress or move toward the average in 1925. The plus and minus quantities in the different parts of the table indicate by signs and amounts the regression or movements of the ratios back to type.’ The foregoing methods of measuring the directions of change with respect to the size of the ratios, while making use of three separate standards of reference to determine relative size, and identifying as changes differences in dispersion in 1924 and 1923, secure substantially uniform results. If measurements of both directions and amounts of change between 1924 and 1925 are made without reference to district-, city-, and volume-group averages in these years, is a tendency of regression, analogous to that already noticed, present? Answer to the question is found in the signs and amounts in Table 188, the method of treating the net earnings ratios being the same as that already employed in the analysis of ratios of gross earnings.® The table shows that, with the exception of the banks in cities with population of 20,000 to 40,000, it was the ratios which were relatively low 5 For a fuller description of the meaning of the signs and amounts secured from such an analysis, see pages 273-275. See page 27%.

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