Search: Net interest margin
RBA Glossary definition for Net interest margin
Net interest margin – A measure of the difference between a bank�s interest earnings and interest expenses, expressed as a proportion of their interest-earning assets.
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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
Banks' net interest margins (NIMs) – the difference between their interest income and interest expenses (as a share of assets) – will fall with interest rates if spreads remain constant. ... When combined with the interest rates on their
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
Introduction
21 Dec 2022
RDP
2022-08
RDP 2022-08: The Consequences of Low Interest Rates for the Australian Banking Sector 1. ... Banks' net interest margins (NIMs) – the difference between their interest income and interest expenses (as a share of assets) – will fall with interest
https://www.rba.gov.au/publications/rdp/2022/2022-08/introduction.html
The Literature through the Lens of Banks' Balance Sheets
21 Dec 2022
RDP
2022-08
When combined with the interest rates on their non-discretionary assets and costs of funding, these decisions combine to form banks' net interest margins (NIMs, a key component of profitability). ... Figure 7: Major Banks' Net Interest Margin. Domestic,
https://www.rba.gov.au/publications/rdp/2022/2022-08/the-literature-through-the-lens-of-banks-balance-sheets.html
References
21 Dec 2022
RDP
2022-08
Claessens S, N Coleman and M Donnelly (2018), ‘“Low-For-Long” Interest Rates and Banks’ Interest Margins and Profitability: Cross-Country Evidence', Journal of Financial Intermediation, 35(Part A), pp ... Martínez Pagés J (2017), ‘Spanish
https://www.rba.gov.au/publications/rdp/2022/2022-08/references.html
Investigating the ‘Reversal Rate’ in Australia
21 Dec 2022
RDP
2022-08
RDP 2022-08: The Consequences of Low Interest Rates for the Australian Banking Sector 5. ... If this constraint binds (i.e. they cannot avoid it by raising external equity), reductions in the policy rate tighten the constraint by reducing banks' net
https://www.rba.gov.au/publications/rdp/2022/2022-08/investigating-the-reversal-rate-in-australia.html