Ratio of Lawful Money to Individual Deposits, National Banks, Country Districts for United States
M14053USM156NNBR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.80
Year-over-Year Change
-19.44%
Date Range
3/1/1875 - 12/1/1915
Summary
The Ratio of Lawful Money to Individual Deposits, National Banks, Country Districts for United States measures the relationship between a bank's cash reserves and its customer deposits, providing insights into the liquidity and stability of the banking system.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic trend represents the ratio of a national bank's lawful money holdings to its individual deposits in country districts across the United States. It is used by economists and policymakers to analyze the liquidity and reserve levels of the banking sector, which is a key indicator of financial system stability.
Methodology
The data is collected and calculated by the U.S. Federal Reserve.
Historical Context
Monitoring this ratio helps inform monetary policy decisions and assess the overall health of the banking industry.
Key Facts
- The ratio typically ranges from 0.10 to 0.20, indicating banks hold 10-20% of deposits as cash reserves.
- Higher ratios suggest greater banking system liquidity and stability.
- Lower ratios may signal increased lending activity or financial system stress.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of a national bank's lawful money holdings (cash reserves) to its individual deposits in country districts across the United States.
Q: Why is this trend relevant for users or analysts?
A: This ratio is a key indicator of banking system liquidity and stability, providing insights that are relevant for economists, policymakers, and market analysts.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Federal Reserve.
Q: How is this trend used in economic policy?
A: Monitoring this ratio helps inform monetary policy decisions and assess the overall health of the banking industry.
Q: Are there update delays or limitations?
A: The data is published regularly by the Federal Reserve with minimal delays, providing timely insights into the state of the banking system.
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Citation
U.S. Federal Reserve, Ratio of Lawful Money to Individual Deposits, National Banks, Country Districts for United States (M14053USM156NNBR), retrieved from FRED.