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RBA Glossary definition for margin loans
margin loans – Loans which are made to investors to purchase financial assets, usually equities or units in managed funds. These assets are used as security for the margin loan. Margin loan clients are required to keep the ratio of borrowings to the value of underlying security below a pre-arranged level. When the ratio goes above this level, lenders will make a margin call, requiring the borrower to either repay some of the loan or provide additional security to support the loan.
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BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
We do not currently model losses on business loans, and simply assume business loan losses move proportionately with housing loan losses. ... θ. is the household share of banks' outstanding loans (estimated from APRA data).
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
BA-MARTIN in a Nutshell
18 Jan 2022
RDP
2022-01
Higher unemployment, lower housing prices and higher interest rates all increase loan losses. ... However, if riskier loans become relatively more costly (i.e. lending standards are tightened), then the credit quality of the average new loan would
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-a-nutshell.html
MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model
18 Jan 2022
RDP
2022-01
However, if riskier loans become relatively more costly (i.e. lending standards are tightened), then the credit quality of the average new loan would increase, such that average lending rates would ... We do not currently model losses on business loans,
https://www.rba.gov.au/publications/rdp/2022/2022-01/full.html