Search: Net interest margin
RBA Glossary definition for Net interest margin
Net interest margin – A measure of the difference between a bank�s interest earnings and interest expenses, expressed as a proportion of their interest-earning assets.
Search Results
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Genay and Podjasek (2014) also find that persistently low interest rates depress US banks' net interest margins. ... Importantly, it also holds when financial crises are controlled for. And it operates through the effect of lower rates on net interest
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
Competition: Profitability and Margins | Conference – 1991
21 Jun 1991
Conferences
The net interest margin suffered badly in 1989 due to non-receipt of LDC interest. ... The use of ratios of operating costs and net interest income to average assets as measures of efficiency and margins is useful for comparing one six months with another
https://www.rba.gov.au/publications/confs/1991/phelps.html
The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
21 Jun 2023
RDP
2023-05
Our analysis confirms the empirical regularity that declining interest rates reduce banks’ net interest margins. ... Importantly, the effect of lower interest rates on net interest margins is larger than the effect on asset returns, suggesting that
https://www.rba.gov.au/publications/rdp/2023/2023-05.html
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The Evolving Structure of the Australian Financial System | Conference – 1996
9 Jul 1996
Conferences
Nonetheless, net interest income continues to provide the bulk of the aggregate profits of Australian banks, indicative of the fact that traditional intermediation services remain a central part of their overall ... This has typically involved very low
https://www.rba.gov.au/publications/confs/1996/edey-gray.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. ... When combined with the interest rates on their
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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The Australian Financial System in the 2000s: Dodging the Bullet | Conference – 2011
24 Jul 2000
Conferences
and was seen by many as putting pressure on bank margins and loan interest rates. ... That effect was particularly noticeable in the 1990s when the margin between the standard variable housing loan interest rate and the RBA target cash rate fell from
https://www.rba.gov.au/publications/confs/2011/davis.html
Some Recent Banking Developments
30 Sep 1994
Speech
Talk by Ian Macfarlane, to CS First Boston, Australasian Banking Conference, Melbourne
https://www.rba.gov.au/speeches/1994/sp-dg-300994.html
The Committed Liquidity Facility
23 Nov 2011
Speech
Speech by Guy Debelle to the Australian Securitisation Forum, Sydney
https://www.rba.gov.au/speeches/2011/sp-ag-231111.html
The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018
12 Apr 2018
Conferences
During the late 1980s and 1990s, increased competition following the deregulation of the financial system caused a large reduction in the major banks' net interest margins (RBA 2014b). ... This occurs because policy rate reductions shrink banks' net
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html
Regulatory Competition and the “Generic” Financial-Services Firm | Conference – 1991
21 Jun 1991
Conferences
Every financial-services firm (FSF) seeks to earn a return on assets large enough to create a positive net interest spread over its total funding costs. ... Net interest spread is the profit margin that exists between explicit and implicit interest paid
https://www.rba.gov.au/publications/confs/1991/kane.html