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Savings and Loan Associations

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In 2001:IIIQ, the net interest margin (NIM) of large savings institutions rose 14 basis points (bp) to 3.28% over the previous quarter. Low interest rates reduced the cost of borrowing faster than interest income, resulting in higher net interest income. Small institutions’ NIM fell 5 bp to 3.17%, reflecting the large share of fixed rate deposits in their liability structure. In a declining interest rate environment, they had less flexibility to adjust their cost of funds. This was the first quarter since 1990 in which large savings institutions had a higher NIM than small ones.


Suggested citation: "Savings and Loan Associations," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-01, pp. 17, 01.01.2002.

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