difinition of net interest? please help long answer
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⏩ Net interest income is the difference between revenues generated by interest-bearing assets and the cost of servicing liabilities. For banks, the assets typically include commercial and personal loans, mortgages, construction loans and investment securities. The liabilities consist primarily of customers' deposits. ⏪
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NII or net interest income is the difference between the income a bank earns from its lending activities and the interest it pays to depositors whereas NIM or net interest margin is calculated by dividing NII by the average income earned from interest-producing assets.
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