Search: Net interest spread
RBA Glossary definition for Net interest spread
Net interest spread – A measure of the difference between a bank�s average rate of interest-bearing assets and its average rate of interest-bearing liabilities.
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Semi-Annual Statement on Monetary Policy
10 Nov 1997
Bulletin
– November 1997
Graph A3. As well as domestic considerations, the narrowing of the bond spread reflects the international setting: most countries' spreads to the US have narrowed (Table A1). ... There has probably been some effect of the interest of Asian investors,
https://www.rba.gov.au/publications/bulletin/1997/nov/2.html
Bank Interest Rate Margins
10 May 1992
Bulletin
– May 1992
The most useful measure of banks' margins is the average net spread – i.e. ... Graph 3. The calculation of average net spreads includes non-accrual loans on which no interest is being earned by banks.
https://www.rba.gov.au/publications/bulletin/1992/may/1.html
Developments in Banks' Funding Costs and Lending Rates
22 Mar 2013
Bulletin
– March 2013
This article updates previous Reserve Bank research on changes in the composition and cost of banks' funding and the impact of these changes on lending rates (Deans and Stewart 2012). The main findings are that the absolute levels of funding costs
https://www.rba.gov.au/publications/bulletin/2013/mar/7.html
Banks' Funding Costs and Lending Rates
10 Mar 2012
Bulletin
– March 2012
Lending rates have generally fallen by more than funding costs which, all else being equal, would imply that the major banks' net interest margins have contracted a little. ... However, while lending rates and funding costs are important determinants,
https://www.rba.gov.au/publications/bulletin/2012/mar/5.html
BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
The NIM can be equivalently written as the net interest spread ( r. ... The net interest spread equals the weighted average of the unconstrained mortgage and business lending spreads. (.
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
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The Effects of Funding Costs and Risk on Banks' Lending Rates
10 Mar 2011
Bulletin
– March 2011
This has contributed to the increase of around 15 basis points in their average net interest margin from historical lows in 2008. ... Australian banks' net interest margins are largely driven by movements in interest rates on loans relative to debt
https://www.rba.gov.au/publications/bulletin/2011/mar/6.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
The Consequences of Low Interest Rates for the Australian Banking Sector
19 Dec 2022
RDP
PDF
1588KB
discretionary assets and costs of funding, these decisions combine to form banks’ net interest. ... their lending spreads while interest rates were falling, this spread compression in 2021 could be the.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf
Statement on Monetary Policy
10 May 2003
Bulletin
– May 2003
Interest rates have been broadly stable at low levels in Asian emerging markets. ... Spreads on Asian emerging market sovereign debt, which are at much lower levels than in other emerging markets, showed little net change.
https://www.rba.gov.au/publications/bulletin/2003/may/1.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. ... So even if Australian banks' were able to maintain their
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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