Difference between revisions of "Net Interest Income"

From Open Risk Manual
Line 12: Line 12:
[[Category:Interest Rate Risk]]

Latest revision as of 11:19, 11 June 2019


Net Interest Income (NII) is an accounting term denoting the difference between Gross Income generated by interest-bearing banking assets (loans etc.) and the debt servicing cost of liabilities (loans, deposits, bonds).

NII is an absolute figure, using the unit of account (e.g. Euro). A relative measure is provided by the Net Interest Margin metric


\mbox{NII} = \mbox{Interest Payments on Assets} - \mbox{Interest Payments on Liabilities}

Contributors to this article

» Wiki admin