Search: margin loans
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 Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
8 Jun 2023
RDP
PDF
1310KB
the drag from lower interest margins. JEL Classification Numbers: E52, F34, F36, G21. ... excluding the value of interest income and interest expense. Loan-loss provisions ( LLP )(a) The ratio of LLPs (or impairment expenses) to cover non-performing loans
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf
Regulatory Competition and the “Generic” Financial-Services Firm | Conference – 1991
21 Jun 1991
Conferences
Institutions with this incentive structure were attracted to a promotional strategy of rolling the dice in booking risky loans and accepting unsustainably low risk-adjusted profit margins. ... At the same time, federal authorities have chosen not to
https://www.rba.gov.au/publications/confs/1991/kane.html
The Consequences of Low Interest Rates for the Australian Banking Sector
19 Dec 2022
RDP
PDF
1588KB
loan losses include Hess, Grimes and Holmes (2009), Bilston, Johnson and Read (2015),. ... margins (NIMs, a key component of profitability). Because banks’ discretionary loan and deposit.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf
What the FOMC Says and Does When the Stock Market Booms | Conference – 2003
18 Aug 2003
Conferences
Instead of tempering the actions of the lenders, they suggest going after a particular group of borrowers, those who use margin loans to purchase equity. ... First, there is the fact that margin loans account for only 1 to 2 per cent of total stock
https://www.rba.gov.au/publications/confs/2003/cecchetti.html
Central Bank Frameworks: Evolution or Revolution?
4 Jan 2023
Conferences
PDF
7522KB
RBA Conference Volume 2018
https://www.rba.gov.au/publications/confs/2018/pdf/rba-conference-volume-2018.pdf
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
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The Link between the Cash Rate and Market Interest Rates
1 Dec 2009
RDP
PDF
179KB
Working in the other direction, strong demand for housing loans mayhave meant that banks could maintain these margins. ... have not increased loan margins and provisions inexpectation of higher future loan defaults and they have not reduced margins
https://www.rba.gov.au/publications/rdp/1995/pdf/rdp9504.pdf
The Role of Collateral in Borrowing
14 Jan 2021
RDP
PDF
1784KB
the extensive margin (i.e. number of counterparties borrowed from), consistent with collateral. ... 4. The credit channel literature shows that borrower and loan characteristics are important.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-01.pdf
The Evolving Structure of the Australian Financial System
7 Dec 2006
Conferences
PDF
118KB
RBA Conference Volume 1996
https://www.rba.gov.au/publications/confs/1996/pdf/edey-gray.pdf
MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA’s Macroeconometric Model
12 Jan 2022
RDP
PDF
1774KB
5.2.4 Scenario 4: banks restrict supply of new loans only 29. ... not be captured. 3.2 Total loan losses. We do not currently model losses on business loans, and simply assume business loan losses move.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-01.pdf