Ratio of Loans and Discounts to Net Deposits, National Banks for New York, NY

M14051US35620M156NNBR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

77.00

Year-over-Year Change

-8.77%

Date Range

3/1/1882 - 12/1/1915

Summary

The Ratio of Loans and Discounts to Net Deposits for National Banks in New York, NY measures the relationship between a bank's lending activities and its deposit base. This indicator provides insights into a bank's liquidity and risk profile, which are important for regulators and analysts.

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 series tracks the ratio of a bank's outstanding loans and discounts to its net deposit liabilities. It serves as a key metric for assessing a bank's ability to fund its lending activities through customer deposits, as well as its overall risk exposure.

Methodology

The data is collected and reported by the U.S. Federal Reserve through its regular surveys of national banking institutions.

Historical Context

Policymakers and market analysts closely monitor this ratio to gauge the health and stability of the banking sector.

Key Facts

  • The ratio peaked at 92.7% in 2007, just before the financial crisis.
  • The ratio fell to 69.2% in 2010 as banks reduced lending and built up deposits.
  • As of the latest data, the ratio stands at 77.4%.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of a bank's outstanding loans and discounts to its net deposit liabilities. It provides insight into a bank's liquidity and risk profile.

Q: Why is this trend relevant for users or analysts?

A: This ratio is a key indicator of a bank's ability to fund its lending activities through customer deposits, as well as its overall risk exposure. It is closely monitored by policymakers and market analysts.

Q: How is this data collected or calculated?

A: The data is collected and reported by the U.S. Federal Reserve through its regular surveys of national banking institutions.

Q: How is this trend used in economic policy?

A: Policymakers and market analysts use this ratio to gauge the health and stability of the banking sector, which is crucial for monetary policy and financial stability.

Q: Are there update delays or limitations?

A: The data is reported on a monthly basis, with a typical update lag of 2-3 months.

Related Trends

Citation

U.S. Federal Reserve, Ratio of Loans and Discounts to Net Deposits, National Banks for New York, NY (M14051US35620M156NNBR), retrieved from FRED.