Net interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms.
Net interest spread is similar to net interest margin; net interest spread expresses the nominal average difference between borrowing and lending rates, without compensating for the fact that the amount of earning assets and borrowed funds may be different.
For example, a bank has average loans to customers of $100, and earns gross interest income of $6.
Successful Bank Asset/Liability Management: A Guide to the Future Beyond Gap, John W. Bitner, Robert A. Goddard, 1992, p. 185.
There are several popular commercial net interest spread software packages to help banks manage and grow their net interest spread effectively.