Business & Finance: Bank Ratios

Four more New York banks increased their capital structures last week—National City, Chemical National, Bankers Trust and American Exchange-Irving Trust.

The American Banker calculates that 12 New York banks have this spring increased their capital by $209,390,000. Such advances it calls sensational and points out that banks used to figure that they must have ten times as much in deposits as they have in capital in order to earn proper dividends on that capital. Now the great New York banks average $8 of deposits, the paper says, to $1 of capital. Bankers Trust with $116,000.000 resources (capital, surplus and undivided profits) and...

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