A.M. Best Co. said that net interest margins remained stable for the banking industry in the third quarter of last year.A.M. Best initiated analysis of the U.S. banking industry this year and now plans to issue a series of special reports and highlights regarding trends in the industry. A.M. Best said that the banking industry's net interest margin, at 3.50% in the third quarter of 2005, was down only one basis point from the second quarter. Banks have tried to offset higher funding costs from rises in short term rates by shifting to higher yielding assets, especially commercial real estate and construction loans, A.M. Best said.
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