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 Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
21 Jun 2023
RDP
2023-05
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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5.4 Focus Topic: Interest Rate Risk
6 Oct 2023
FSR
– October 2023
5.4 Focus Topic: Interest Rate Risk | Financial Stability Review – October 2023
https://www.rba.gov.au/publications/fsr/2023/oct/focus-topic-interest-rate-risk.html
Household and Business Finances in Australia
6 Apr 2023
FSR
– April 2023
Household and Business Finances in Australia | Financial Stability Review – April 2023
https://www.rba.gov.au/publications/fsr/2023/apr/household-business-finances.html
The Consequences of Low Interest Rates for the Australian Banking Sector
19 Dec 2022
RDP
PDF
1588KB
Banks’ net interest margins. (NIMs) – the difference between their interest income and interest expenses (as a share of assets). – ... Figure 7: Major Banks’ Net Interest Margin. Domestic, half-yearly. Sources: ABS; APRA; ASX; Australian
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf
The Australian Financial System
8 Apr 2021
FSR
– April 2021
Net interest income was broadly unchanged over 2020, while costs increased a little relative to income. ... This can squeeze net interest margins (NIMs) because as rates fall, deposits that already receive zero or very low interest rates have not been
https://www.rba.gov.au/publications/fsr/2021/apr/australian-financial-system.html
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
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Firms’ Price-setting Behaviour: Insights from Earnings Calls
6 Nov 2023
RDP
PDF
1677KB
paragraph is about the topic of interest. The index nets off positive, pz+ , and negative, pz. , ... updates and forecasts for net interest margins over the year ahead.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-06.pdf
BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
Banks' net interest margins (net interest income as a share of assets) equal their average lending rates ( r. ... D. ,. t. ]. L. t. ⎵. Net interest margin. }. where. τ.
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
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The Australian Financial System
8 Apr 2022
FSR
– April 2022
However, of late, profits have decreased as net interest margins (NIMs) have narrowed (Graph 3.3). ... For example, an increase in nominal interest rates is likely to reduce the value of both assets and liabilities, although the net effect on their
https://www.rba.gov.au/publications/fsr/2022/apr/australian-financial-system.html
3. Resilience of the Australian Financial System
9 Oct 2023
FSR
- October 2023
PDF
607KB
https://www.rba.gov.au/publications/fsr/2023/oct/pdf/03-australian-financial-system.pdf