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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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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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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Results
11 Sep 2015
RDP
2015-01
An increase in interest rates leads to an increase in debt-servicing costs for indebted households, lowering their financial margins. ... Therefore, interest rate rises tend to increase the share of households with negative financial margins, and thus
https://www.rba.gov.au/publications/rdp/2015/2015-01/results.html
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Firms' Price-setting Behaviour: Insights from Earnings Calls
11 Sep 2023
RDP
2023-06
For example, executives of commercial banks often provide updates and forecasts for net interest margins over the year ahead. ... y. t. l. e. t. where y. t. is the measure of interest.
https://www.rba.gov.au/publications/rdp/2023/2023-06/full.html
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The Model
22 Nov 2016
RDP
2016-07
These assets have low yields, and thus posting margin carries an opportunity cost. ... That is, expenditure on consumption, purchases of OTC derivatives, margin requirements and the CCP default fund contribution must be less than or equal to the (net)
https://www.rba.gov.au/publications/rdp/2016/2016-07/model.html
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Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
1 Sep 2019
RDP
2019-09
2. Estimating Funding Costs, Gross Returns and Net Returns. The net return (NR. ... Figure 8: Sensitivity of Net Returns. Net returns at alternative debt funding rates.
https://www.rba.gov.au/publications/rdp/2019/2019-09/full.html
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Contagion Analysis
29 Sep 2015
RDP
2015-02
Bank i's total outgoing variation margin payments are. , summing over all positive net obligations to counterparties j. ... VMGH therefore allows for partial payment of variation margin obligations by a CCP.
https://www.rba.gov.au/publications/rdp/2015/2015-02/contagion-analysis.html
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Macrofinancial Stress Testing on Australian Banks
20 Sep 2022
RDP
2022-03
Most connections in the model occur within a single period, although asset growth and end-period capital ratios may have implications for funding spreads and net interest income (hence profitability) in ... And growth in total assets positively
https://www.rba.gov.au/publications/rdp/2022/2022-03/full.html
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Do Australian Households Borrow to Keep up with the Joneses?
10 Nov 2022
RDP
2022-06
Table B1: Probability of Holding Debt – Extensive Margin. Effects of a 1 standard deviation increase in Gini coefficient. ... 0.00. Financial assets. 0.00. 0.00. Liquid net worth. 0.00. 0.00. No of observations.
https://www.rba.gov.au/publications/rdp/2022/2022-06/full.html
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