Search: Net interest margin

Sort by: Relevance Date
1–5 of 5 collapsed search results for 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.

Search Results

The Consequences of Low Interest Rates for the Australian Banking Sector

21 Dec 2022 RDP 2022-08
Anthony Brassil
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

Introduction

21 Dec 2022 RDP 2022-08
Anthony Brassil
RDP 2022-08: The Consequences of Low Interest Rates for the Australian Banking Sector 1. ... Banks' net interest margins (NIMs) – the difference between their interest income and interest expenses (as a share of assets) – will fall with interest
https://www.rba.gov.au/publications/rdp/2022/2022-08/introduction.html

The Literature through the Lens of Banks' Balance Sheets

21 Dec 2022 RDP 2022-08
Anthony Brassil
When combined with the interest rates on their non-discretionary assets and costs of funding, these decisions combine to form banks' net interest margins (NIMs, a key component of profitability). ... Figure 7: Major Banks' Net Interest Margin. Domestic,
https://www.rba.gov.au/publications/rdp/2022/2022-08/the-literature-through-the-lens-of-banks-balance-sheets.html

References

21 Dec 2022 RDP 2022-08
Anthony Brassil
Claessens S, N Coleman and M Donnelly (2018), ‘“Low-For-Long” Interest Rates and Banks’ Interest Margins and Profitability: Cross-Country Evidence', Journal of Financial Intermediation, 35(Part A), pp ... Martínez Pagés J (2017), ‘Spanish
https://www.rba.gov.au/publications/rdp/2022/2022-08/references.html

Investigating the ‘Reversal Rate’ in Australia

21 Dec 2022 RDP 2022-08
Anthony Brassil
RDP 2022-08: The Consequences of Low Interest Rates for the Australian Banking Sector 5. ... If this constraint binds (i.e. they cannot avoid it by raising external equity), reductions in the policy rate tighten the constraint by reducing banks' net
https://www.rba.gov.au/publications/rdp/2022/2022-08/investigating-the-reversal-rate-in-australia.html