IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v86y2010i274p329-341.html
   My bibliography  Save this article

Securitisation and Banks' Net Interest Margins

Author

Listed:
  • JOSHUA KIRKWOOD

Abstract

This article develops a theoretical model of the effect of securitisation on banks' net interest margins (NIMs). The model incorporates a dual role for securitisation. The direct effect accounts for the influence of securitisation on banks' funding costs. The indirect effect recognises that the development of securitisation markets made it possible for mortgage originators to compete with banks, which contributed to a decline in banks' market power and a fall in their NIMs. In estimating the model econometrically, this article finds evidence that both the direct and indirect effects worked to reduce Australian banks' NIMs prior to the onset of the credit crisis. Copyright © 2010 The Economic Society of Australia.

Suggested Citation

  • Joshua Kirkwood, 2010. "Securitisation and Banks' Net Interest Margins," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 329-341, September.
  • Handle: RePEc:bla:ecorec:v:86:y:2010:i:274:p:329-341
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=ecor&volume=86&issue=274&year=2010&part=null
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kevin Davis, 2011. "The Australian Financial System in the 2000s: Dodging the Bullet," RBA Annual Conference Volume,in: Hugo Gerard & Jonathan Kearns (ed.), The Australian Economy in the 2000s Reserve Bank of Australia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:86:y:2010:i:274:p:329-341. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/esausea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.