196

BANKING STANDARDS

investment ratios to the three series are summarized in Table
119, from which it is found that all three series (1) decrease
when both time deposits and investments increase and (2) increase
 when time deposits increase and investments decrease.

TABLE 110

NET PERCENTAGE CHANGES FROM YEAR TO YEAR IN RATIOS
CORRELATED WITH CORRESPONDING CHANGES IN RATIOS
oF TIME DEPOSITS AND OF INVESTMENTS TO
EARNING ASSETS, 1910-1025

NET PrecENTAGE CHANGES FROM YEAR TO YEAR

RATIOS:
Time
Deposits
to
Earning Assets

RaTti0S:
Investments
to
Earning
Assets

Number
, of
District-Years


Ratios:
Gross Earnings
to
Earning Assets |

Ratios: |
Total Expense
to
Earning Assets

RATIOS:
Net Earnings
to
Earning Assets

re een

Increasing

Average 71 41.390
ncreasing | 37 —3.40
Decreasing 34 +6.60
iverage - —3.34
increasing | _— ee
Decreasing 1 —3.34
Average 72. +1.33
Increasing 37 —3.40
Decreasing 35 46.32

+3.47
+o. "
56 R
40.56

— 0.89
— 4.42
+ 2.96
—14.72
—14.53

Decreasing

Average |

ort

—-_— 7
“+z

— 4.42
+ 2.46

One further type of comparison of the ratios of time deposits
to earning assets with other statistical series should be made
before closing this section of the discussion. It relates to the
district ratios of time deposits relative to the average for the
country as a whole. It is patent that if the ratios in certain districts
 are above, others are below this level, but it is not apparent
that the districts with ratios above (or below) this level have
gross earnings, total expense, and net earnings at the same time
above (or below) the country averages for the respective series.
From what has been said, however, it might be assumed, since
ratios of time deposits to earning assets which are high relative
to district levels, or which increase from year to year, tend to
be associated, respectively, with high or with increasing ratios
of total expense to earning assets, for instance, that districts in
which the ratios of time deposits to earning assets are higher or
lower than the country level would tend to have ratios of total
expense to earning assets higher or lower, respectively, than the
country level. But such is not the case for all districts holding