Bank's Net Interest Margin for Canada
DDEI01CAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.59
Year-over-Year Change
-51.09%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Net Interest Margin for Canada measures the difference between the interest income a bank earns and the interest it pays out. It is a key indicator of a bank's profitability and efficiency.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Bank's Net Interest Margin represents the spread between the average interest rate a bank charges on its loans and the average rate it pays on its deposits and other funding sources. It is a widely used metric for analyzing the financial performance of banks and the overall health of the banking sector.
Methodology
The data is collected and calculated by the World Bank from national banking industry sources.
Historical Context
This metric is closely monitored by policymakers, regulators, and investors to assess the competitiveness and soundness of the Canadian banking system.
Key Facts
- The bank's net interest margin in Canada averaged 2.2% over the past decade.
- Canadian banks have maintained relatively stable net interest margins compared to other major economies.
- Net interest margins are a key driver of bank revenue and overall profitability.
FAQs
Q: What does this economic trend measure?
A: The Bank's Net Interest Margin for Canada measures the difference between the interest income a bank earns on its loans and the interest it pays on its deposits and other funding sources.
Q: Why is this trend relevant for users or analysts?
A: The net interest margin is a crucial indicator of a bank's profitability and efficiency, and is closely monitored by policymakers, regulators, and investors to assess the overall health of the Canadian banking system.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank from national banking industry sources.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use this metric to evaluate the competitiveness and soundness of the Canadian banking sector, which informs their decisions on financial regulations and monetary policy.
Q: Are there update delays or limitations?
A: The data is updated annually, with a typical 1-2 year delay, and may not capture short-term fluctuations in the banking industry.
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Citation
U.S. Federal Reserve, Bank's Net Interest Margin for Canada (DDEI01CAA156NWDB), retrieved from FRED.