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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Semi-Annual Statement on Monetary Policy
10 May 1997
Bulletin
– May 1997
The impact of those cash rate reductions on home mortgage borrowers has been reinforced by a significant compression of intermediaries' interest margins in that area. ... The value of loan approvals in January and February was 23 per cent higher than a
https://www.rba.gov.au/publications/bulletin/1997/may/1.html
Bank Fees in Australia
16 Mar 2023
Bulletin
– March 2023
This article updates previous Reserve Bank research on bank fees charged to Australian households, businesses and government.
https://www.rba.gov.au/publications/bulletin/2023/mar/bank-fees-in-australia.html
Managing the Risks of Holding Self-securitisations as Collateral
17 Sep 2020
Bulletin
– September 2020
Self-securitisations are structured pools of assets, such as residential mortgages, created by banks specifically to use as collateral to access liquidity from the Reserve Bank.
https://www.rba.gov.au/publications/bulletin/2020/sep/managing-the-risks-of-holding-self-securitisations-as-collateral.html
Semi-Annual Statement on Monetary Policy
10 May 1999
Bulletin
– May 1999
loans. Table A1: Aspects of Financial Restructuring. Indonesia. Korea. Malaysia. Thailand. Non-performing loans. ... Other information is from: Korea – Financial Supervisory Commission, figures include precautionary loans (loans where interest has not
https://www.rba.gov.au/publications/bulletin/1999/may/1.html
Innovations in the Provision of Finance for Investor Housing
10 Dec 2002
Bulletin
– December 2002
1990s. Given the high margins at the time, housing loans were extremely profitable. ... Financial institutions have considerably increased their appetite for investor housing loans in recent years and, reflecting this, have developed and marketed loan
https://www.rba.gov.au/publications/bulletin/2002/dec/1.html
2023
14 Dec 2022
Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/2023/
Semi-Annual Statement on Monetary Policy
10 Nov 1999
Bulletin
– November 1999
Margin lending by banks and brokers for the purchase of shares by individuals has been growing strongly. ... This reflects borrowers switching from loan products with higher interest rates, such as traditional fixed-term personal loans, to products which
https://www.rba.gov.au/publications/bulletin/1999/nov/1.html
Household Borrowing Behaviour: Evidence from HILDA
10 Mar 2011
Bulletin
– March 2011
The emergence of mortgage originators in the 1990s boosted competition in the mortgage market, lowering interest margins particularly for investor housing loans. ... Since 2004, the home-loan-to-income ratio of households with home-equity loans has
https://www.rba.gov.au/publications/bulletin/2011/mar/2.html
Developments in Banks' Funding Costs and Lending Rates
20 Mar 2014
Bulletin
– March 2014
This article updates previous Reserve Bank research on how developments in the composition and pricing of banks' funding have affected their overall cost of funding and the setting of lending rates (Deans and Stewart 2012; Robertson and Rush 2013).
https://www.rba.gov.au/publications/bulletin/2014/mar/8.html
Statement on Monetary Policy
10 Nov 2002
Bulletin
– November 2002
The fall in long-term interest rates, in particular, has encouraged borrowers to refinance existing home loans at a lower cost.
https://www.rba.gov.au/publications/bulletin/2002/nov/1.html