Amid all the frustration over low interest rates, it might be surprising that bank loans now yield a substantially fatter spread above funding costs than when the Federal Reserve started loosening policy in late 2007.

In fact, the gap between banks’ cost of funds and yields across loan types — commercial and industrial loans, single-family home loans, consumer loans — expanded through much of the Fed’s campaign to stimulate the economy. (See the following graphic. Interactive controls are described in the caption. Text continues below.)

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.