Search: basis point
RBA Glossary definition for basis point
basis point – A basis point is 1/100th of 1 per cent or 0.01 per cent, so 100 basis points (bps) is equal to 1 percentage point. The term is used in money and securities markets to define differences in interest or yield. If an interest rate were to increase from 2 per cent to 3 per cent, it is said to have risen by 100 basis points (bps) or one percentage point.
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The Australian Financial System
8 Apr 2021
FSR
– April 2021
Graph 3.1. As interest rates have fallen a larger share of bank deposits has paid low interest rates (between zero and 25 basis points). ... This is addressed by banks having larger capital conservation buffers and raising the default level of the
https://www.rba.gov.au/publications/fsr/2021/apr/australian-financial-system.html
Resilience of Australian Households and Businesses
22 Mar 2024
FSR
– March 2024
Resilience of Australian Households and Businesses | Financial Stability Review – March 2024
https://www.rba.gov.au/publications/fsr/2024/mar/resilience-of-australian-households-and-businesses.html
Overview
4 Oct 2019
FSR
– October 2019
The cash rate has been cut by 75 basis points since May, and financial markets expect further easing will be needed to achieve the Bank's inflation and employment objectives. ... On an internationally comparable basis, Australian banks' Tier 1 capital
https://www.rba.gov.au/publications/fsr/2019/oct/overview.html
Box D: Stress Testing at the Reserve Bank
20 Oct 2017
FSR
– October 2017
Table D2: Sensitivity of CET1 Capital Ratios to Key Variables. Deviation in CET1 ratio from baseline scenario; in basis points.
https://www.rba.gov.au/publications/fsr/2017/oct/box-d.html
Box B: Interest-only Mortgage Lending
21 Apr 2017
FSR
– April 2017
For example, the four major banks have announced, on average, an 18 basis point premium for IO owner-occupier loans and a 15 basis point premium for IO investor loans (in
https://www.rba.gov.au/publications/fsr/2017/apr/box-b.html
Box C: Recent Developments in Australian Banks' Capital Position and Return on Equity
20 Oct 2016
FSR
– October 2016
The study highlighted APRA's conservative application of the international capital framework, with the major banks' aggregate CET1 ratio around 300 basis points higher when reported on an internationally comparable basis. ... Most lenders increased their
https://www.rba.gov.au/publications/fsr/2016/oct/box-c.html
Box C: Interest Rate Risk in the Australian Financial System
10 Apr 2018
FSR
– April 2018
For the ‘banking book’, this is measured as the expected change in economic value from a 200 basis point increase in interest rates at all maturities. ... real interest rates rose (by the equivalent of one-quarter of the current nominal risk-free
https://www.rba.gov.au/publications/fsr/2018/apr/box-c.html
Household and Business Finances in Australia
7 Oct 2022
FSR
– October 2022
Estimates based on current profits suggest that for each 100 basis point increase in the average variable business lending rate, relative to the start of the current tightening cycle, the ... weighted share of listed companies with a low ICR would
https://www.rba.gov.au/publications/fsr/2022/oct/household-business-finances-in-australia.html
Household and Business Finances in Australia
8 Oct 2021
FSR
– October 2021
corrections. To address rising systemic risks, the Australian Prudential Regulation Authority (APRA) has announced a 50 basis point increase to the serviceability assessment rate it expects banks to use to assess ... Most notably, the share of new loans
https://www.rba.gov.au/publications/fsr/2021/oct/household-business-finances-in-australia.html
Box A: Covered Bonds
10 Mar 2011
FSR
– March 2011
100 and 140 basis points respectively in early 2009, while spreads for Spanish covered bonds peaked at around 180 basis points. ... at about 250 basis points on average in 2009, while spreads for prime RMBS peaked at around 500 basis points.
https://www.rba.gov.au/publications/fsr/2011/mar/box-a.html