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RBA Glossary definition for IT
IT – Information Technology
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MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model
18 Jan 2022
RDP
2022-01
During large downturns, monetary policy is more effective than usual because it can reduce loan losses and therefore moderate any reduction in credit supply.
https://www.rba.gov.au/publications/rdp/2022/2022-01.html
BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
For our purposes, it is sufficient to define banks' return on assets (ROA = profits / assets) rather than their profits. ... It is only when losses normalise that capital ratios increase at a noticeably faster speed.
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
Appendix A: Literature Review
18 Jan 2022
RDP
2022-01
While the existence of financial accelerator mechanisms was known before the global financial crisis (Kiyotaki and Moore 1997; Bernanke et al 1999), it was this crisis that highlighted the failure of ... It seems as though the linkage is almost entirely
https://www.rba.gov.au/publications/rdp/2022/2022-01/appendix-a.html
Conclusion
18 Jan 2022
RDP
2022-01
We assume the economy starts from a benign economic situation before it is ‘shocked’ in a way that stresses the banking sector and requires monetary policy to respond. ... The results are promising; monetary policy is more effective precisely when it
https://www.rba.gov.au/publications/rdp/2022/2022-01/conclusion.html
MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model
18 Jan 2022
RDP
2022-01
For our purposes, it is sufficient to define banks' return on assets (ROA = profits / assets) rather than their profits. ... It is only when losses normalise that capital ratios increase at a noticeably faster speed.
https://www.rba.gov.au/publications/rdp/2022/2022-01/full.html
Introduction
18 Jan 2022
RDP
2022-01
So it is important for the RBA to have a modelling framework that incorporates at least some of these accelerator channels. ... So it can weather larger storms. Second, the majority of assets held by Australian banks are loans that can be repriced at
https://www.rba.gov.au/publications/rdp/2022/2022-01/introduction.html
Non-technical summary for ‘MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model’
18 Jan 2022
RDP
2022-01
And so it goes on compounding. Having a banking sector in MARTIN allows us to explore important policy questions. ... During large downturns, monetary policy is more effective than usual because it can reduce loan losses and therefore moderate any
https://www.rba.gov.au/publications/rdp/2022/2022-01/non-technical-summary.html
How Might COVID-19 Have Affected the Banking Sector and What Feedback Would This Have Had on the Real Economy?
18 Jan 2022
RDP
2022-01
In reality, monetary policy would respond by reducing the cash rate (or via unconventional policies), and it is likely that governments and APRA would also respond. ... The reduction in credit is shown as it will not differ between implementations.
https://www.rba.gov.au/publications/rdp/2022/2022-01/how-might-covid-19-have-affected-the-banking-sector-and-what-feedback-would-this-have-had-on-the-real-economy.html
How Does the Pass-through of Monetary Policy Change with the State of the Economy?
18 Jan 2022
RDP
2022-01
the cash rate (in some states of the economy), it will also change how other macroeconomic variables respond to monetary policy. ... So it is important for policymakers to take this reduced pass-through into account when formulating policy.
https://www.rba.gov.au/publications/rdp/2022/2022-01/how-does-the-pass-through-of-monetary-policy-change-with-the-state-of-the-economy.html