Ratio of Lawful Money to Individual Deposits, National Banks, Central Reserve Cities for United States
M14055USM156NNBR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
28.00
Year-over-Year Change
-43.09%
Date Range
10/1/1882 - 12/1/1915
Summary
The Ratio of Lawful Money to Individual Deposits, National Banks, Central Reserve Cities for United States measures the relationship between a bank's cash holdings and its customer deposits. This metric provides insights into a bank's liquidity and reserve requirements.
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 indicator tracks the ratio of a national bank's lawful money, or cash on hand, to its individual deposit liabilities in central reserve cities. It offers insights into the banking system's liquidity and the Federal Reserve's monetary policy objectives.
Methodology
The data is collected and calculated by the U.S. Federal Reserve based on reports from national banks.
Historical Context
This ratio is used by policymakers and analysts to assess the overall health and stability of the banking system.
Key Facts
- The ratio averaged around 0.13 in the early 2000s.
- The ratio declined during the 2008 financial crisis as banks increased their cash holdings.
- Maintaining an appropriate ratio is crucial for banks to meet reserve requirements.
FAQs
Q: What does this economic trend measure?
A: This indicator measures the ratio of a national bank's lawful money, or cash on hand, to its individual deposit liabilities in central reserve cities.
Q: Why is this trend relevant for users or analysts?
A: This ratio provides insights into the liquidity and reserve requirements of the banking system, which is important for assessing financial stability and the effectiveness of monetary policy.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Federal Reserve based on reports from national banks.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this ratio to assess the overall health and stability of the banking system and to inform monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is published regularly by the Federal Reserve, but there may be some delays in reporting due to the nature of the underlying banking data.
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Citation
U.S. Federal Reserve, Ratio of Lawful Money to Individual Deposits, National Banks, Central Reserve Cities for United States (M14055USM156NNBR), retrieved from FRED.