Spread rate

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Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2011 what is the concept of spread rate??? how does it help in banking interest issues?

CS Bijoy

CS Bijoy (Expert)
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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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