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

Collection:: Economics Books

336 BANKING STANDARDS tion of total expense ratios in 1924 and of the type of change between 1924 and 1925, increasing gross earnings ratios invari- ably*? result in net increases, and decreasing gross earnings ratios in net decreases in net earnings ratios; (2) increasing and de- creasing total expense ratios sometimes produce net increases and sometimes net decreases in net earnings ratios; (3) when in- creases occurred in gross earnings ratios and also in ratios of total expense, net earnings ratios increased, thus indicating the dominant influence of gross earnings; (4) when decreases oc- curred in gross earnings ratios and also in total expense ratios, net earnings ratios decreased, thus demonstrating the greater influence of changes in gross earnings ratios in producing the results; and (5) on the average, increasing ratios of gross earn- ings and decreasing ratios of total expense increase net earnings ratios by the same amount as they are decreased by decreasing ratios of gross earnings and by increasing ratios of total expense. While these are some of the general conclusions which may be drawn from Table 196, the detail are illuminating in other re- spects. Let us compare the net changes in net earnings ratios for banks with gross earnings and with total expense ratios differently placed with respect to the 1924 averages, and observe the relative effect upon such changes of the regression tendencies in the two series. Position of Ratios in the Two Series Both above Both below Regression Tendencv Net Change in Net Earnings Ratios To decrease | A fall* To increase A rise Dominant Factor in Producing the Result Gross Earnings ratios Gross Earnings ratios * Slight. If the net changes in net earnings ratios are determined for banks with both gross earnings and total expense ratios changing, the following results are secured: Nature of Change : Net Change in in Both Series Net Earnings Dominant Factor in Producing the Result i Both increasing Both decreasing A rise A fall Gross Earnings ratios Gross Earnings ratios 2 One slight exception—a decrease of .01 of a point. For explanation of this decrease. see Case 1. Appendix I, page 386. —————

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