Ratio of Loans and Discounts to Net Deposits, National Banks, Central Reserve Cities for United States
M14050USM156NNBR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
80.00
Year-over-Year Change
-8.57%
Date Range
5/1/1887 - 12/1/1915
Summary
The Ratio of Loans and Discounts to Net Deposits, National Banks, Central Reserve Cities for United States measures the relationship between a bank's outstanding loans and its total net deposits. This metric is a key indicator of bank liquidity and lending activity.
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 total loans and discounts to its net deposits, specifically for banks located in central reserve cities within the United States. It provides insight into the lending practices and liquidity profile of the nation's major banking institutions.
Methodology
The data is collected and calculated by the U.S. Federal Reserve based on reports from national banks.
Historical Context
Policymakers and analysts use this metric to assess the health and lending behavior of the U.S. banking system.
Key Facts
- The ratio reached a high of 90.8% in 2007 before declining during the financial crisis.
- A higher ratio indicates more aggressive lending relative to deposits, which can signal increased risk.
- The metric has remained relatively stable around 70-80% in recent years.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of a national bank's total loans and discounts to its net deposits, providing insight into the bank's lending practices and liquidity profile.
Q: Why is this trend relevant for users or analysts?
A: This metric is a key indicator of bank liquidity and lending activity, which is important for policymakers and analysts assessing the health and behavior of the U.S. banking system.
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 metric to assess the lending practices and liquidity profile of the nation's major banking institutions, which informs policy decisions and market monitoring.
Q: Are there update delays or limitations?
A: The data is published monthly with a typical 1-2 month delay, and it only covers national banks in central reserve cities, which may not represent the full U.S. banking system.
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Citation
U.S. Federal Reserve, Ratio of Loans and Discounts to Net Deposits, National Banks, Central Reserve Cities for United States (M14050USM156NNBR), retrieved from FRED.