Net interest income
BankingDefinition
A bank's revenue from interest spread (interest earned − interest paid). Largest line on most US bank income statements.
Sensitive to (a) rate level, (b) yield curve shape, (c) deposit composition (sticky/cheap vs. brokered/expensive). 2023 regional bank crisis was a classic NII squeeze: rising rates raised funding costs faster than asset yields could reset.
Sensitive to (a) rate level, (b) yield curve shape, (c) deposit composition (sticky/cheap vs. brokered/expensive). 2023 regional bank crisis was a classic NII squeeze: rising rates raised funding costs faster than asset yields could reset.