Bank's Net Interest Margin for United States
DDEI01USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.77
Year-over-Year Change
-18.67%
Date Range
1/1/2000 - 1/1/2021
Summary
The bank's net interest margin measures the difference between the interest income banks earn on loans and the interest they pay on deposits. It is a key indicator of banking sector profitability and efficiency.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The bank's net interest margin is a widely used metric that represents the difference between the income banks earn on their interest-bearing assets and the interest they pay on their liabilities. This measure provides insight into the overall financial health and performance of the banking industry.
Methodology
The data is collected and calculated by the World Bank using information reported by commercial banks.
Historical Context
Policymakers and market analysts closely monitor the bank's net interest margin to assess the broader conditions and competitiveness of the banking sector.
Key Facts
- The average bank's net interest margin in the U.S. was 3.30% in 2021.
- Net interest margins have declined over the past decade due to low interest rates.
- Higher net interest margins indicate more profitable banking operations.
FAQs
Q: What does this economic trend measure?
A: The bank's net interest margin measures the difference between the interest income banks earn on loans and the interest they pay on deposits, providing insight into banking sector profitability.
Q: Why is this trend relevant for users or analysts?
A: The bank's net interest margin is a key indicator of the financial health and performance of the banking industry, which is closely monitored by policymakers and market analysts.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank using information reported by commercial banks.
Q: How is this trend used in economic policy?
A: Policymakers and market analysts use the bank's net interest margin to assess the broader conditions and competitiveness of the banking sector, which is important for financial stability and economic growth.
Q: Are there update delays or limitations?
A: The data is updated annually by the World Bank, and there may be some lag in the most recent figures being available.
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Citation
U.S. Federal Reserve, Bank's Net Interest Margin for United States (DDEI01USA156NWDB), retrieved from FRED.