Your Bank

In the earlier examples I used different figures for Your Bank because typical balance sheet figures would not have worked for calculating the higher reserve ratios in my examples. For the rest of the examples, however, I want to use figures that reflect a more typical bank.

In order to create a typical balance sheet I simply took the figures reported for all member commercial banks and divided those figures by 10,000. Thus, the asset and liability ratios, such as deposits to loans, should reflect the typical bank.

In addition, I have shown the summary account balances for most of these figures, with the exceptions of Cash Assets, Interbank Loans and Deposits, for which I have given additional detail. (I had to estimate Bank Reserves based on other sources, because they were not given explicitly.) The detail of these items will play a part later in our discussion. I have left the category "Residual" as the data sources categorize them. This amounts to roughly the capital base of the bank. Bank capital could take up an entire topic.

Some of the pertinent figures from Your Bank's balance sheet will appear in future examples. To set the stage of an example in the Fed Funds Market we will look at…