A bank's net interest margin includes
A)noninterest expenses.
B)noninterest income.
C)loan losses.
D)None of these are correct.

Question

Quizplus · Accepted Answer

Net interest margin is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their (interest-earning) assets. It does not include noninterest expenses, noninterest income, or loan losses directly.

A Bank's Net Interest Margin Includes