Search: borrower
RBA Glossary definition for borrower
borrower – A person or entity that incurs a debt to a lender on agreed terms.
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Discussion | Conference – 2018
12 Apr 2018
Conferences
In Australia at present, macroprudential policy is working effectively to tighten credit to mortgage borrowers – particularly to investors – and has delivered both a slowing in credit growth and house price growth. ... In contrast, policies aimed at
https://www.rba.gov.au/publications/confs/2018/broadbent-disc.html
Discussion | Conference – 2018
12 Apr 2018
Conferences
In these models when there was a negative shock to the net worth of a borrower, their ability to borrow was inhibited and capital fell subsequently, generating the well-known financial
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello-disc.html
The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018
12 Apr 2018
Conferences
L,j. is always paid in full), but that some borrowers will not repay their loans. ... For example, an unexpected increase in either current or future unemployment will increase borrowers' probability of default.
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html
Discussion | Conference – 2018
12 Apr 2018
Conferences
But their FIT target constrains them (and even delivers the opposite policy guidance), and the combination of asset booms and overleveraged borrowers threatens an uncomfortable period when interest rates return to
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton-disc.html
Financial Stability in a Low Interest Rate Environment: An Australian Case Study | Conference – 2017
16 Mar 2017
Conferences
This reduction only affected borrowers seeking to maximise their borrowings, not the average borrower, but that is exactly how one can lean against developing risks most efficiently. ... Ultimately, this will have to be reversed, which could be difficult
https://www.rba.gov.au/publications/confs/2017/ellis-littrell.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Lower interest rates reduce loan-loss provisions, as they reduce borrowers' debt servicing costs and default probabilities. ... All this saps banks' intermediation capacity because rolled-over bad loans crowd out new lending for more productive borrowers.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
Exploring the Link between the Macroeconomic and Financial Cycles | Conference – 2017
16 Mar 2017
Conferences
referred to as the ‘financial accelerator’ mechanism), for example, through the procyclicality of borrower net worth. ... Bernanke and Gertler argue that this deadweight loss varies inversely with borrower net worth.
https://www.rba.gov.au/publications/confs/2017/cagliarini-price.html
Discussion | Conference – 2017
16 Mar 2017
Conferences
Rate cuts reduce interest payments for borrowers with floating-rate debt, resulting in higher cash flows and potentially more spending, particularly for borrowers who are liquidity constrained.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann-disc.html
New Financial Stability Governance and Central Banks | Conference – 2017
16 Mar 2017
Conferences
In contrast, LVRs are borrower- rather than lender-based, suggesting political or other factors, such as home ownership goals, may be considerations and a more system-wide analysis is needed.
https://www.rba.gov.au/publications/confs/2017/edge-liang.html
Discussion | Conference – 2017
16 Mar 2017
Conferences
This makes borrowers look deceptively solid in the boom phase. The two financial gaps can be incorporated within a standard filtering system to estimate trends, such as potential output.
https://www.rba.gov.au/publications/confs/2017/cagliarini-price-disc.html