BANKING AFFAIRS

Detailed explanation-1: -Net interest rate spread refers to the difference between the interest rate a financial institution pays to depositors and the interest rate it receives from loans.

Detailed explanation-2: -The difference between the rate at which the interest is paid on deposits and is charged on loans is called? The spread is the difference between the rate of interest banks pay for deposits we leave with them and the interest rate they charge on the loans they make to others.

Detailed explanation-3: -Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability.

Detailed explanation-4: -The interbank rate is the rate of interest charged on short-term loans made between U.S. banks. Banks may borrow money from other banks to ensure that they have enough liquidity for their immediate needs, or lend money when they have excess cash on hand.

Detailed explanation-5: -The spread is the difference between the average rate earned on assets minus the average rate paid on liabilities. That spread would only equal the net interest margin percentage if the dollar amount of earning assets equaled the dollar amount of interest-bearing liabilities.