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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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Notes to and Forming Part of the Financial Statements

19 Oct 2023 RBA Annual Report – October 2023
2.8. Net interest margin. (0.7). Analysis for the year ended 30 June 2022. ... Interest income. 595,103. 8,869. 1.5. Interest expense. 495,535. 411. 0.1. Net interest margin.
https://www.rba.gov.au/publications/annual-reports/rba/2023/financial-statements/notes.html

Notes to and Forming Part of the Financials Statements

27 Oct 2022 RBA Annual Report – October 2022
Cash collateral received. 386. 1. 0.2. 495,535. 411. 0.1. Net interest margin. ... 4,432. 1.3. Interest expense. 224,991. 147. 0.1. Net interest margin. 1.3.
https://www.rba.gov.au/publications/annual-reports/rba/2022/financial-statements/notes.html

The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data

8 Jun 2023 RDP PDF 1310KB
Our analysis confirms the empirical. regularity that declining interest rates reduce banks’ net interest margins. ... Keywords: interest rates, bank profitability, net interest margin, monetary policy. Table of Contents.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf

Non-technical summary for 'The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country…

16 Jun 2023 RDP PDF 188KB
RDP 2023-05 non-technical summary
https://www.rba.gov.au/publications/rdp/2023/2023-05/rdp-2023-05-non-technical-summary.pdf

Financial Intermediation | Reserve Bank of Australia Annual Report - 1994

30 Jun 1994 Annual Report
The net interest margin shows net interest income (interest received minus interest paid) divided by total interest-earning assets. ... The comparison shows that all countries in the sample, except the United States, have had a downward trend in their
https://www.rba.gov.au/publications/annual-reports/rba/1994/fin-intermediation.html

3.4 Earnings, Distribution and Capital

19 Oct 2023 RBA Annual Report – October 2023
Earnings, Distribution and Capital | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/earnings-distribution-and-capital.html

2.2 Operations in Financial Markets

19 Oct 2023 RBA Annual Report – October 2023
Operations in Financial Markets | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/operations-in-financial-markets.html

Read me file for The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data

16 Jun 2023 RDP PDF 98KB
RDP 2023-05 supplementary information
https://www.rba.gov.au/publications/rdp/2023/2023-05/rdp-2023-05-read-me.pdf

Risk Management

12 Apr 2020 RBA Annual Report – 2020
The Reserve Bank is exposed to little interest rate risk on its balance sheet liabilities. ... security. The required margin is maintained throughout the term of the repo through daily two-way margining.
https://www.rba.gov.au/publications/annual-reports/rba/2020/risk-management.html

The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data

21 Jun 2023 RDP 2023-05
Callan Windsor, Terhi Jokipii and Matthieu Bussiere
Our analysis confirms the empirical regularity that declining interest rates reduce banks’ net interest margins. ... Importantly, the effect of lower interest rates on net interest margins is larger than the effect on asset returns, suggesting that
https://www.rba.gov.au/publications/rdp/2023/2023-05.html
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