net interest rate spread

net interest rate spread definition - finance
The differ-ence between the average yield on loans, mortgage-related securities, and investments earned by the bank or savings and loan and the average rate that the institution has to pay on deposits and borrowings. It is a key determinant of a bankÂ’s profitability.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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