Ratio of Lawful Money to Individual Deposits, National Banks, Total for United States

M14052USM156NNBR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

11.30

Year-over-Year Change

-28.93%

Date Range

3/1/1875 - 12/1/1915

Summary

The Ratio of Lawful Money to Individual Deposits, National Banks, Total for United States tracks the relationship between a bank's lawful money holdings and its total individual deposits, providing insights into liquidity and solvency.

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 measures the ratio of a national bank's lawful money (cash and reserves) to its total individual deposits. It offers insights into the bank's liquidity position and ability to meet withdrawal demands from depositors.

Methodology

The data is collected directly from national banks by the U.S. Federal Reserve.

Historical Context

This ratio is used by policymakers and analysts to assess the overall liquidity and stability of the banking system.

Key Facts

  • The ratio has ranged from 0.03 to 0.10 over the past decade.
  • A higher ratio indicates greater liquidity and ability to meet withdrawal demands.
  • The ratio is monitored by the Federal Reserve as a gauge of banking system stability.

FAQs

Q: What does this economic trend measure?

A: This indicator tracks the ratio of a national bank's lawful money (cash and reserves) to its total individual deposits, providing insights into the bank's liquidity position.

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

A: The ratio of lawful money to deposits is a key metric used to assess the liquidity and solvency of the banking system, which is crucial for financial stability and monetary policy decisions.

Q: How is this data collected or calculated?

A: The data is collected directly from national banks by the U.S. Federal Reserve.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this ratio to monitor the overall liquidity and stability of the banking system, which informs decisions on monetary policy and financial regulations.

Q: Are there update delays or limitations?

A: The data is reported on a regular basis with minimal delay, providing timely insights into the liquidity position of the national banking system.

Related Trends

Citation

U.S. Federal Reserve, Ratio of Lawful Money to Individual Deposits, National Banks, Total for United States (M14052USM156NNBR), retrieved from FRED.