Description and sources

Universal banking is measured by the ratio of own resources (capital, reserves) against individual deposits and savings. The numerator includes capital, reserves, and notes whenever appropriate. The denominator includes individual deposits and savings accounts. Unless otherwise noted, it excludes creditor current accounts, which exist for transaction purposes and are usually unremunerated. Interbank deposits (which usually constitute a relatively insignificant proportion of total liabilities) are excluded whenever possible. Data are for 1913 unless stated otherwise.

For the United Kingdom, 43 joint-stock banks of England and Wales, Sheppard 1971, p. 118. The numerator is “Paid-up capital and reserves.” The denominator is “Deposits and other accounts”; it was not possible to separate current accounts from deposits. As a result, the ratio overstates the liquidity of UK banks.

For the United States, 7467 national banks, Historical Statistics of the United States 1975, Series X 634–55, p. 1025. The numerator is “Capital accounts”; the denominator is “Deposits” excluding “US government.” It was not possible to separate current accounts from deposits. Consequently, the ratio overstates the liquidity of US banks, a bias that is further reinforced by the large number of banks included in the sample.

For Canada, all chartered banks, Urquhart and Buckley 1965, Series H 226–245, pp. 240–42. The numerator is “Capital and rest fund.” The denominator includes “Notes in circulation,” “Personal savings deposits,” “Public notice deposits,” and “Public demand deposits.”

For Australia, 21 Australian trading banks, Butlin et al. 1971, pp. 114, 120, and 131. The numerator is “Shareholders' equity.”