At almost all banks noninterest expense is greater than noninterest income; hence, the overhead efficiency ratio is usually greater than 100%.

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The overhead efficiency ratio is calculated as noninterest expense divided by noninterest income. If noninterest expense is greater than noninterest income, the ratio would be greater than 100%. However, this is not always the case for all banks, as some banks manage to keep their noninterest expenses lower than their noninterest income.

At Almost All Banks Noninterest Expense Is Greater Than Noninterest