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Net interest spread

Banking[None]Percentage

Definition

Interest yield and interest paid on borrowed funds are calculated as a percentage of average earning assets or interest bearing liabilities. For example, a bank has average loans to customers of $100, and earns gross interest income of $6. The interest yield is 6/100 = 6%

Formula

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Tags

bank, interest

Metadata

Category: Banking · Added: May 17, 2026

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