Page 233 - Flip Banks TG
P. 233
Net Interest Margin:
A bank is a leveraged fund that borrows money at low short-
term rates and then invests the funds into higher interest-
earning assets. By doing so, a bank earns “net interest
income.” If you divide this by a bank’s earning assets, you
get its net interest margin, which shows how much the
business yields on its invested assets.
