You know, that deposit rates haven’t risen like lending rates thing?
From Lloyds 2006:
The banking net interest margin decreased by 6 basis points to 2.78 per cent. Much of this margin decline has been caused by the impact of
lower earnings on the Group’s capital and other interest-free liabilities and, excluding this funding impact, the margin was broadly stable year
on year. The banking net interest margin in the second half of 2005 actually increased by 5 basis points to 2.80 per cent, compared with
2.75 per cent in the first half of 2005.
From memory that net margin’s about 2.83 at present.
So, things have returned to normal after 15 years of suppression then.