Please, I will love to know the benchmark for Net Interest Margin ratio in banks.
How low or high can Net Interest Margin (NIM) be in research to be considered acceptable as a bad or good performance in relation to bank profitability.
Thanks.
The benchmark is not cast in stone. It's safer to use the industry average.
Dear Oluwaseyi Olalere, find the attachment of links, I hope these will help you.
https://www.imf.org/external/pubs/ft/wp/2013/wp1351.pdf
http://www.tandfonline.com/doi/abs/10.1080/1744654042000303629
https://www.bis.org/publ/qtrpdf/r_qt0212g.pdf
http://www.sciencedirect.com/science/article/pii/S0939362507000416
You can use last year's NIM. You can also consider adjusting it for differences in economic conditions.
You can use the average of the last 3 year's NIM, after adjusting for differences in economic conditions.
Use last 1-3 years NIM, after adjusting for differences in economic conditions in different year.
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