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RBA Glossary definition for margin loans
margin loans – Loans which are made to investors to purchase financial assets, usually equities or units in managed funds. These assets are used as security for the margin loan. Margin loan clients are required to keep the ratio of borrowings to the value of underlying security below a pre-arranged level. When the ratio goes above this level, lenders will make a margin call, requiring the borrower to either repay some of the loan or provide additional security to support the loan.
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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
a) Includes deposits in housing loan offset accounts and non-interest bearing deposits. ... b) Excludes deposits in housing loan offset accounts; includes non-interest bearing deposits.
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. ... This is because most loans in Australia are variable rate,
https://www.rba.gov.au/publications/rdp/2022/2022-08/introduction.html
References
21 Dec 2022
RDP
2022-08
Download the Paper 1.6. MB. Albertazzi U, D Andreeva, M Belloni, A Grassi, C Gross, J Mosthaf and T Shakir (2020), ‘Prospects for Euro Area Bank Lending Margins in an ... Claessens S, N Coleman and M Donnelly (2018), ‘“Low-For-Long” Interest
https://www.rba.gov.au/publications/rdp/2022/2022-08/references.html
The Literature through the Lens of Banks' Balance Sheets
21 Dec 2022
RDP
2022-08
a) Includes deposits in housing loan offset accounts and non-interest bearing deposits. ... b) Excludes deposits in housing loan offset accounts; includes non-interest bearing deposits.
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
The only margin of adjustment available to the banks in this scenario is their credit supply, so they respond to this constraint tightening by reducing credit supply (i.e. ... Without a change in credit supply, cash rate reductions both reduce banks'
https://www.rba.gov.au/publications/rdp/2022/2022-08/investigating-the-reversal-rate-in-australia.html