Banking standards under the federal reserve system

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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.

180 BANKING STANDARDS TasLE IV SuMMARY OF RESULTS FOR SEPARATE GROUPS GrOUP® CHARACTER OF REGRESSION —_— Net on Total ! Net on Gross — — th? I — —0.7¢ =a 22 + + =n ~r —0.40 =*=0.08 == 29 =0.0¢ N74 0.04 ~ esp 1 oa ; Bh =0, 10 Lo .3I =0.Y *See Table I of Appendix I. - ProBABLE ERROR OF A SINGLE DBSERVATION Net on Gross =2.8 =2.0 =3.1 x1.6 Groups 2 and 4) and the difference between any group value of E.’ and the value for all groups, equation (6), (with the possible exception of the value for Group 1 and the value based on all groups)—these differences are significant in indicating different laws of variation of net earnings between any two groups and between the respective groups and the combined groups, with the exceptions noted. It is this variation of influence of total expense on net earnings which accounts for the distribution of the residuals in Tables II and III, and, from the evidence in Table IV, it is clear that proposition 1 on page 379 is much more true than proposition 2 on the same page. A third outstanding fact from Table IV is that gross earnings is the dominant factor in determining net earnings in every group, although, relatively, it is more important in some groups than in others. The relative influences are shown in Table V. From this table it appears that annual changes in gross earn- ings ratios have from 24% to 133% more influence than do annual changes in total expense ratios in causing annual changes in net earnings ratios, and that the order of the relative influence in the different groups is—Ilargest first—Groups 4, 2, 1, and 3. Further inspection of this table shows that for banks having gross earnings ratios below and total expense ratios above their respective averages in 1924 (Group 4), the relative influence of changes in gross earnings ratios and of changes in total expense ratios from 1924 to 1925 was Cn =) 5.5 times as great as were the relative influences of these changes in Group 3—banks having gross earnings ratios above, and total expense ratios below, their respective 1924 averages.

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