Wages and salaries are the largest noninterest expense item for most banks, and substantially larger than interest expense.

Question

Quizplus · Accepted Answer

Interest expense is typically the largest noninterest expense for banks, not wages and salaries. Banks often incur significant costs in the form of interest paid on deposits and other borrowed funds, which usually exceed the costs associated with employee compensation.

Wages and Salaries Are the Largest Noninterest Expense Item for Most