No interest margin is a financial measurement that helps asses the usefulness of revenue from non-interest items such as fees and service charges. … Also referred as non-interest margin, it is the difference between non-interest income and non-interest expenses divided by total earning assets.
What does non-interest mean?
: not of, resulting from, or being interest (as on a loan or an investment) noninterest income. noninterest. noun. Definition of noninterest (Entry 2 of 2) : a lack of interest in something (such as a topic) He grew up with a noninterest in sports that still exists.—
How do you calculate non-interest?
It is because the critical operational activity for any bank or financial institution is accepting money deposits and lending money. This is considered income from non-operating activities of the business. However, it becomes significantly important during the economic slowdown or financial crisis.