Chart 5
Use of non-interest-bearing liabilities has helped to support net interest margins
Year Net interest margin on Interest-Bearing Liabilities (percent) Net interest margin on Non-Interest-Bearing Liabilities (percent)
1997 3.45 1.17
1998 3.34 1.12
1999 3.37 1.03
2000 3.24 1.06
2001 3.47 0.89
2002 3.34 0.86
2003 3.22 0.73
2004 3.09 0.79
2005 2.96 0.90
Source: FDIC -"Profits and Balance Sheet Developments at U.S. Commercial Banks in 2003,"
Federal Reserve, Federal Reserve Bulletin, Spring 2004.