Net Interest Rate Spread

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Dictionary Says

Definition of 'Net Interest Rate Spread'

The difference between the average yield a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial institution’s profitability (or lack thereof).
Investopedia Says

Investopedia explains 'Net Interest Rate Spread'

In simple terms, the net interest spread is like a profit margin. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. While the federal funds rate plays a large role in determining the rate at which an institution lends immediate funds, open market activities ultimately shape the rate spread.
Search results for

'Net Interest Rate Spread'

  • Analyzing A Bank's Financial Statements

    http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
    ... a positive interest spread or net interest income. The size of this spread is a
    major determinant of the profit generated by a bank. This interest rate risk is ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Spread ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/spread.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Liabilities - Effect Of Changing ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/rate-changes-debt-market-values.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Measuring ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/measuring-interest-rate-risk.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Derivatives - Interest Rate Caps and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/interest-rate-caps-floors.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Interest Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-risk.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Corporate Finance - Net Present Value ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/npv-net-present-value-irr-internal-rate-of-return.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Derivatives - Interest Rate Options vs. ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/interest-rate-options-versus-fras-forward-rate-agreements.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Purchasing ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/purchasing-power-interest-rate-parity.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

  • CFA Level 1 Study Guide - Alternative Investments - Net Asset ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/net-asset-value.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; ... 5.8 Purchasing Power Parity
    and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread Calculations; ...

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