Spread rate


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Querist : Anonymous (Querist)
15 August 2011 what is the concept of spread rate??? how does it help in banking interest issues?

CS Bijoy (Expert)
16 August 2011 The difference between the average yield a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial institution’s profitability

In simple terms, the net interest spread is like a profit margin. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be



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