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