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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.

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Glossary

9 Jun 2023
A glossary of terms used on the RBA website
https://www.rba.gov.au/glossary/

Statistical Tables

7 Sep 2023 Statistics
Household and Business Finances. Interest Rates. Exchange Rates. Share Markets.
https://www.rba.gov.au/statistics/tables/

Box A: Recent Developments in Net Interest Income in the Chinese Banking System

10 Sep 2013 FSR – September 2013
Financial Stability Review – September 2013 Box A: Recent Developments in Net Interest Income in the Chinese Banking System. ... The net interest margin (NIM) provides an indication of the effects of interest rates on banks' profitability.
https://www.rba.gov.au/publications/fsr/2013/sep/box-a.html

Semi-Annual Statement on Monetary Policy

10 Nov 1997 Bulletin – November 1997
Graph A3. As well as domestic considerations, the narrowing of the bond spread reflects the international setting: most countries' spreads to the US have narrowed (Table A1). ... There has probably been some effect of the interest of Asian investors,
https://www.rba.gov.au/publications/bulletin/1997/nov/2.html

Banks' Funding Costs and Lending Rates

10 Mar 2012 Bulletin – March 2012
Cameron Deans and Chris Stewart
Lending rates have generally fallen by more than funding costs which, all else being equal, would imply that the major banks' net interest margins have contracted a little. ... However, while lending rates and funding costs are important determinants,
https://www.rba.gov.au/publications/bulletin/2012/mar/5.html

Changes to Statistical Tables

4 Sep 2023 Statistics
F12. 12 April 2022. Table F1 – Interest Rates and Yields – Money Market – Daily. ... Lending rates; Securitised housing loans; Average outstanding variable rate; Owner-occupier; Interest Only.
https://www.rba.gov.au/statistics/tables/changes-to-tables.html

Developments in Banks' Funding Costs and Lending Rates

22 Mar 2013 Bulletin – March 2013
Benn Robertson and Anthony Rush
This article updates previous Reserve Bank research on changes in the composition and cost of banks' funding and the impact of these changes on lending rates (Deans and Stewart 2012). The main findings are that the absolute levels of funding costs
https://www.rba.gov.au/publications/bulletin/2013/mar/7.html

The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018

12 Apr 2018 Conferences
Anthony Brassil, Jon Cheshire and Joseph Muscatello
Therefore, changes in the cash rate do not have the mechanical effect on net interest spreads that they would if assets and liabilities repriced at different speeds. ... The change in the no-/low-interest spread now contributes a similar amount to the
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html

Videos | Education

4 May 2023
We set the official interest rate for Australia, which is called the cash rate. ... So the spread between the rate that banks borrow at and the expected policy rate.
https://www.rba.gov.au/education/resources/videos.html

Regulatory Competition and the “Generic” Financial-Services Firm | Conference – 1991

21 Jun 1991 Conferences
Ed Kane
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