While computation of net interest margin of banking company, do we consider income from investments.
if so, the denominator of the ratio i.e, interest earning assets include 'investments also.
thanks in advance
Hello
this article can help
Article Bank Earnings Management and Income Smoothing using Commissi...
Hi Portharla,
follow link below
Why Are Net Interest Margins of Large Banks So Compressed?
https://www.federalreserve.gov/econresdata/notes/feds-notes/2015/why-are-net-interest-margins-of-large-banks-so-compressed-20151005.html
All assets that are interest-bearing must be taken into account.
Calculating the total amount of interest-bearing assets should be used.
NIM is measured as (the interest received on credit facilities (loans) minus
the interest paid on deposits)/Assets.
The NIM is one of the most important factors that measure the
efficiency of banks as intermediaries that manage savings and
provide loans (Obeid, 2017).
For more details kindly read my paper in my profile
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