Search: Net interest spread
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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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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
Introduction
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. ... The combination of stable spreads and a deposit lower bound
https://www.rba.gov.au/publications/rdp/2022/2022-08/introduction.html
Non-technical summary for ‘The Rise in Household Liquidity’
21 Dec 2022
RDP
2022-08
For example, the international literature predicts that the difference between banks' lending rates and their costs of funding those loans (known as the net interest spread) will shrink as interest rates ... Conversely, I find that Australia's major
https://www.rba.gov.au/publications/rdp/2022/2022-08/non-technical-summary.html
The Literature through the Lens of Banks' Balance Sheets
21 Dec 2022
RDP
2022-08
So even if Australian banks' were able to maintain their lending spreads while interest rates were falling, this spread compression in 2021 could be the beginning of the delayed effect predicted ... For banks with unhedged fixed-rate assets and
https://www.rba.gov.au/publications/rdp/2022/2022-08/the-literature-through-the-lens-of-banks-balance-sheets.html
Investigating the ‘Reversal Rate’ in Australia
21 Dec 2022
RDP
2022-08
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 interest income. ... Therefore, the accelerated credit growth that comes with interest rate
https://www.rba.gov.au/publications/rdp/2022/2022-08/investigating-the-reversal-rate-in-australia.html