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FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON OFFICE OF THE CHAIRMAN May l£, 1951 Mr* Marriner S# Eccles, Member Board of Governors of the Federal Reserve System Washington 25, D« G* Dear Marriner: On last Saturday, May 12, we crossed the threshold into the eighth year in which this Hation has not suffered from a single receivership of an insured bank or a pennyfs loss to any depositor in an insured bank* This added another milepost to the all-time record for safety and stability in the dual banking system of the United States which has followed creation of Federal Deposit Insurance Corporation* Manifestly, this record could not have been established without the vision and the cooperation of you and your able colleagues on the Board of Governors of the Federal Reserve System* We enclose two charts which may be of interest to you an the occasion of this "anniversary11 • Chart No* 3k spots bank suspensions during the 17 years prior to Federal deposit insurance as against receiverships of all banks, insured and noninsured, during the 17 years since the Corporation began operations on January 1, 1931 Chart Ho* 339 which compares the capital ratios of insured commercial banks at the end of 19k5 and at the close of 1950* would indicate that'one of the principal factors in bringing about the unprecedented record of bank solvency during recent years has been the steady improvement in bank capital. It cannot be said that capital improvement is the panacea, but the maintenance of a satisfactory capital ratio is certainly excellent preventive medicine and so should be encouraged in every bank throughout the Nation« A and sincerely yours, Enclosures (2) o COMPARISON OF C A P I l ^ RATIOS 1945 and 1950 O INSURED COMMERCIAL BANKS December 31,1945 CAPITAL RATIOS 1945 NATIONAL AVERAGE 5.5% 5.5% and above Below 5.5% 12 States above the 1945 National average December 30,1950 CAPITAL RATIOS 1950 NATIONAL AVERAGE 6.8% 6.8% and above Below 1950 average: 5.5% to 6.7% Below 1945 average of 5.5% 43 States at or above the 1945 National average 13 States at or above the 1950 National average Division of Research and Statistics FEDERAL DEPOSIT INSURANCE CORPORATION C H A R T N O . 33 B A N K S U S P E N S I O N S 1917 to 1 9 3 3 BANKS PLACED I N RECEIVERSHIP 1 9 3 4 to 1 9 5 0 TOTAL 341 Banks Insured by FDIC • NO RECEIVERSHIPS since MAY 1944 sion of Research and Statistics FEDERAL DEPOSIT INSURANCE CORPORATION C H A
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