Abstract
Financial institutions often do not charge explicit fees for the services they provide, but areinstead compensated by the spread between interest rates on loans and deposits. The lack ofexplicit fees in lending makes it difficult to measure the output of banks and other financialinstitutions. Effective measurement should distinguish between income derived from lendingservices and income derived from portfolio decisions about risk and duration, and should beconsistent among bank and nonbank financial institutions.
| Original language | English |
|---|---|
| Journal | Federal Reserve Bank of San Francisco Economic Letter |
| Volume | 2011 |
| Issue number | 15 |
| Publication status | Published - 16-May-2011 |