Noninterest Expense

Fixed operating costs that a financial institution must incur, such as anticipated bad debt provisions. Noninterest expenses can include employee salaries and benefits, equipment and property leases, taxes, loan loss provisions and professional service fees. Companies will offset noninterest expenses by generating revenue through noninterest income.

Employee compensation (salaries and benefits) typically comprise the largest portion of an institution's noninterest expenses. Usually these expenses relate to activities that are not associated with targeting customers to deposit funds in the bank.


Investment dictionary. . 2012.

Look at other dictionaries:

  • noninterest expense — For a financial institution, operating expense from sources other than interest expense. The main components of noninterest expense are usually personnel, occupancy, equipment, and professional services. American Banker Glossary …   Financial and business terms

  • net noninterest expense — Total noninterest expense minus total noninterest income. A measure used by financial institutions to monitor the extent to which fees and other sources of noninterest income offset noninterest expenses. For a financial institution, expenses… …   Financial and business terms

  • net non-interest expense — Total noninterest expense minus total noninterest income. A measure used by financial institutions to monitor the extent to which fees and other sources of noninterest income offset noninterest expenses. For a financial institution, expenses… …   Financial and business terms

  • non-interest expense — For a financial institution, operating expense from sources other than interest expense. The main components of noninterest expense are usually personnel, occupancy, equipment, and professional services. American Banker Glossary …   Financial and business terms

  • net overhead — See net noninterest expense. American Banker Glossary …   Financial and business terms

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