Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is an interest rate margin?

user-image
Question added by Muhammad Rafeeq , Asst. Finance Manager , Caltrols Fzco
Date Posted: 2016/07/29
ghufran ahmed
by ghufran ahmed , Fund Manager (FIXED Income) , HBL Asset management Limited

Measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their (interest-earning) assets.

Emad Yaacoub CTP
by Emad Yaacoub CTP , Treasury Manager , Tawakol Metal Industries Group

the difference between the interest a bank pays on deposits and the interest it charges on loans

Muhammad Rafeeq
by Muhammad Rafeeq , Asst. Finance Manager , Caltrols Fzco

It is also called as Spread, the difference of rate of interest (Usually LIBOR i.e. London Interbank Offered Rate) and the rate paid on a debt security as used for floating rate notes on the stock market.