Search: margin loans
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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Household and Business Finances
8 Apr 2022
FSR
– April 2022
While banks' loan underwriting policies remain sound overall, strong demand and some lenders' accommodative practices have pushed the share of high-DTI loans to very high levels. ... Large falls in property valuations could put some commercial property
https://www.rba.gov.au/publications/fsr/2022/apr/household-business-finances.html
The Australian Financial System
8 Apr 2022
FSR
– April 2022
Until recently, banks were offering lower interest rates on fixed-rate loans, which – along with borrower preference and loan refinancing – resulted in a shift towards fixed-rate mortgage products that have ... Data from the Reserve Bank's
https://www.rba.gov.au/publications/fsr/2022/apr/australian-financial-system.html
What the FOMC Says and Does When the Stock Market Booms | Conference – 2003
18 Aug 2003
Conferences
Instead of tempering the actions of the lenders, they suggest going after a particular group of borrowers, those who use margin loans to purchase equity. ... First, there is the fact that margin loans account for only 1 to 2 per cent of total stock
https://www.rba.gov.au/publications/confs/2003/cecchetti.html
Fiscal, Monetary and Macroprudential Regimes: Incentives-Values Compatibility in Constitutional Democracies
28 Dec 2022
Conferences
PDF
375KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-tucker.pdf
Risk and the Transformation of the Australian Financial System
22 Nov 2007
Conferences
PDF
238KB
RBA Conference Volume 2007
https://www.rba.gov.au/publications/confs/2007/pdf/ryan-thompson.pdf
The Global Financial Environment
8 Apr 2021
FSR
– April 2021
Lower margins have induced Japanese banks to take on substantial holdings of offshore leveraged loans and collateralised loan obligations (CLOs), which are vulnerable to price falls. ... Endnotes. FSB (Financial Stability Board) (2019),
https://www.rba.gov.au/publications/fsr/2021/apr/global-financial-environment.html
The Transmission of Monetary Policy through Banks' Balance Sheets
10 Feb 2020
Conferences
PDF
1946KB
RBA Conference Volume 2018
https://www.rba.gov.au/publications/confs/2018/pdf/rba-conference-volume-2018-brassil-cheshire-muscatello.pdf
The Global Financial Environment
7 Oct 2022
FSR
– October 2022
The rise in interest rates supported bank profitability, as loan rates increased by more than deposit rates. ... Non-performing loan (NPL) ratios remain at low levels for most major banks (Graph 1.9).
https://www.rba.gov.au/publications/fsr/2022/oct/global-financial-environment.html
The Australian Financial System
8 Oct 2021
FSR
– October 2021
However, to date, losses have been minimal, and the share of loans that are non-performing has returned to pre-pandemic levels (Graph 3.2). ... banks' business loans exposure; these industries include electricity, agriculture, and oil and gas
https://www.rba.gov.au/publications/fsr/2021/oct/australian-financial-system.html
Resilience of Australian Households and Businesses
6 Oct 2023
FSR
– October 2023
Resilience of Australian Households and Businesses | Financial Stability Review – October 2023
https://www.rba.gov.au/publications/fsr/2023/oct/household-business-finances-in-australia.html