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.
Search Results
The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
21 Jun 2023
RDP
2023-05
demand. All else equal, lower interest rates are likely to directly impact bank profitability by eroding banks' net interest margins (NIMs). ... AUS. CAN. CHL. CZE. DEU. FRA. NOR. POL. SWE. CHE. Net interest margin (NIM).
https://www.rba.gov.au/publications/rdp/2023/2023-05/full.html
Data Description
21 Jun 2023
RDP
2023-05
Net interest margin (NIM). The ratio of net interest income (NII) expressed as a percentage of average interest earning assets (AEA). ... Short-term interest rate. Three-month interbank rate. Spread. Difference between the 10-year sovereign bond yield
https://www.rba.gov.au/publications/rdp/2023/2023-05/data-description.html
Empirical Findings across Countries
21 Jun 2023
RDP
2023-05
AUS. CAN. CHL. CZE. DEU. FRA. NOR. POL. SWE. CHE. Net interest margin (NIM). ... FRA. SWE. CHE. Net interest margin (NIM). r. 0.018. 0.036. 0.331.
https://www.rba.gov.au/publications/rdp/2023/2023-05/empirical-findings-across-countries.html
Channels of Monetary Policy to Bank Profitability
21 Jun 2023
RDP
2023-05
To see this, note that in the identity above, even with constant spreads, the NIM falls as the level of interest rates declines. ... when interest rates decline net income from these positions falls.
https://www.rba.gov.au/publications/rdp/2023/2023-05/channels-of-monetary-policy-to-bank-profitability.html