Chart 4
The Cost of Funding Assets has Risen Faster for Large Banks In Recent Quarters, Pressuring Their Net Interest Margins.
Date Yield on assets for banks with assets less than $100 million (percent) Yield on assets for banks with assets greater than $100 million (percent) Yield on assets for banks with assets greater than $10 billion (percent) Yield on liabilities for banks with assets less than $100 million (percent) Yield on liabilities for banks with assets greater than $100 million (percent) Yield on liabilities for banks with assets greater than $10 billion (percent)
1984    11.6 11.2 11.0 7.4 7.7 8.7
12.1 11.6 11.8 7.5 7.9 9.1
12.3 12.0 12.4 7.9 8.3 10.0
12.3 11.8 12.1 7.9 8.2 9.1
1985    11.7 11.2 11.2 7.2 7.5 8.0
11.7 11.2 11.1 7.1 7.3 7.8
11.5 11.0 10.7 6.8 7.0 7.3
11.2 10.8 10.4 6.6 6.8 7.1
1986    10.9 10.5 10.4 6.4 6.7 7.1
10.6 10.3 9.9 6.2 6.4 6.5
10.3 10.0 9.6 6.0 6.2 6.2
9.9 9.6 9.2 5.6 5.8 5.9
1987    9.5 9.3 9.0 5.3 5.5 6.0
9.6 9.4 9.0 5.3 5.6 6.2
9.6 9.5 9.3 5.3 5.7 6.5
9.7 9.6 9.5 5.4 5.8 6.8
1988    9.5 9.4 9.3 5.4 5.8 6.6
9.6 9.5 9.4 5.4 5.8 6.7
9.9 9.8 9.8 5.6 6.0 7.1
10.0 10.0 10.2 5.7 6.2 7.5
1989    10.1 10.2 10.3 5.8 6.4 7.8
10.5 10.5 10.8 6.1 6.7 8.5
10.5 10.5 10.8 6.2 6.8 8.3
10.5 10.4 10.9 6.2 6.7 8.0
1990    10.2 10.2 10.5 6.0 6.4 7.4
10.3 10.2 10.3 6.1 6.4 7.3
10.4 10.3 10.3 6.1 6.4 7.2
10.3 10.2 10.4 6.0 6.3 7.0
1991    9.9 9.9 9.8 5.7 5.9 6.2
9.8 9.7 9.5 5.5 5.7 5.7
9.8 9.6 9.3 5.4 5.5 5.5
9.5 9.3 8.9 5.1 5.1 4.9
1992    8.9 8.8 8.2 4.4 4.5 4.1
8.7 8.5 7.9 4.1 4.1 3.8
8.5 8.3 7.6 3.8 3.8 3.4
8.2 8.0 7.4 3.5 3.5 3.1
1993    7.8 7.7 7.1 3.2 3.2 2.9
7.8 7.6 7.0 3.1 3.2 2.8
7.7 7.5 6.7 3.1 3.1 2.8
7.5 7.3 6.6 3.0 3.0 2.6
1994    7.3 7.1 6.5 2.8 2.8 2.6
7.5 7.3 6.8 2.9 2.9 2.9
7.7 7.5 7.1 3.0 3.1 3.2
7.9 7.8 7.5 3.2 3.3 3.7
1995    8.0 7.9 7.9 3.4 3.6 4.3
8.3 8.1 8.1 3.7 3.9 4.4
8.4 8.2 8.0 3.9 4.0 4.4
8.4 8.2 8.1 3.9 4.0 4.4
1996    8.2 8.1 7.9 3.8 3.8 4.1
8.2 8.1 7.9 3.8 3.8 4.1
8.3 8.2 7.9 3.8 3.8 4.0
8.3 8.2 8.0 3.8 3.8 4.0
1997    8.1 8.0 7.9 3.7 3.8 3.9
8.3 8.2 8.0 3.8 3.9 4.0
8.4 8.3 8.0 3.9 3.9 4.1
8.4 8.2 8.1 3.9 3.9 4.1
1998    8.1 8.0 7.9 3.8 3.9 4.1
8.2 8.1 7.9 3.8 3.9 4.1
8.2 8.1 7.8 3.9 3.9 4.1
8.0 7.9 7.6 3.8 3.8 3.9
1999    7.7 7.6 7.4 3.6 3.6 3.7
7.8 7.7 7.4 3.6 3.6 3.7
7.9 7.8 7.6 3.6 3.6 3.9
8.0 7.9 7.8 3.6 3.7 4.1
2000    8.0 7.9 8.0 3.7 3.8 4.2
8.2 8.1 8.2 3.8 4.0 4.6
8.4 8.3 8.4 4.1 4.3 4.8
8.4 8.4 8.4 4.2 4.4 4.8
2001    8.2 8.1 8.1 4.1 4.2 4.4
8.0 7.9 7.7 3.9 3.9 3.8
7.7 7.6 7.3 3.7 3.6 3.4
7.3 7.2 6.7 3.2 3.1 2.6
2002    6.8 6.7 6.2 2.7 2.7 2.2
6.8 6.7 6.2 2.5 2.5 2.2
6.7 6.6 6.1 2.4 2.4 2.2
6.5 6.3 5.8 2.2 2.2 1.9
2003    6.1 6.0 5.4 2.0 2.0 1.7
5.9 5.8 5.3 1.9 1.9 1.6
5.8 5.7 5.1 1.7 1.7 1.5
5.7 5.6 5.1 1.6 1.6 1.4
2004    5.6 5.5 5.0 1.5 1.6 1.4
5.6 5.4 5.0 1.4 1.5 1.4
5.7 5.6 5.0 1.5 1.6 1.5
5.7 5.7 5.2 1.5 1.7 1.7
2005   5.7 5.7 5.3 1.6 1.8 1.9
5.9 6.0 5.5 1.7 2.0 2.2
6.1 6.2 5.7 1.9 2.2 2.4
Source: FDIC