Bank's Net Interest Margin for Australia
DDEI01AUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.67
Year-over-Year Change
-17.46%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Net Interest Margin for Australia measures the difference between the interest income a bank earns and the interest it pays out. It is a key indicator of the profitability and efficiency of the Australian banking sector.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Bank's Net Interest Margin tracks the spread between the interest rates a bank charges on loans and the rates it pays on deposits and other funding sources. This metric provides insight into a bank's ability to generate income from its core lending and deposit-taking activities.
Methodology
The data is collected and calculated by the World Bank from national central bank sources.
Historical Context
Policymakers and analysts use this metric to assess the competitiveness and health of the Australian banking industry.
Key Facts
- The average bank net interest margin in Australia was 2.07% in 2021.
- Australian bank net interest margins have declined over the past decade.
- Low interest rates can compress bank net interest margins.
FAQs
Q: What does this economic trend measure?
A: The Bank's Net Interest Margin for Australia measures the difference between the interest income a bank earns on its assets and the interest it pays on its liabilities.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into the profitability and efficiency of the Australian banking sector, which is crucial for assessing the health and competitiveness of the financial system.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank from national central bank sources.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to evaluate the competitiveness and stability of the Australian banking industry, which informs decisions on financial regulation and monetary policy.
Q: Are there update delays or limitations?
A: The data is published annually with a slight delay, and may not capture short-term fluctuations in bank net interest margins.
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Citation
U.S. Federal Reserve, Bank's Net Interest Margin for Australia (DDEI01AUA156NWDB), retrieved from FRED.