Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p36
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 132647–135974

borrower less the cost of funds.

                        For liabilities, the margin is equal to the value of funds less the weighted average interest rate paid to the depositor or holder.

                        If a derivative is margined it means the variation margin is netted against the derivative.
Margin call             Margin calls occur when falls in the value of the borrower's security cause the LVR to exceed the borrower's maximum LVR plus the 'buffer'.  The 'buffer' is typically about 5 to 10 per cent, and allows borrowers to utilise the maximum allowable LVR on their security without continually receiving margin calls due to usual fluctuations in share prices.

                        In the event of a margin call, the borrower is contacted and is required to reduce the LVR on their loan, usually by contributing additional approved security, paying down the loan by selling part of the existing portfolio, or depositing additional cash.

Margin lending/loans    Margin lending is the provision of secured loans to investors for the purpose of purchasing financial assets. The purchased assets are generally used as security for the margin loan. The financial assets purchased are usually equities or units in managed funds.

                        For the purposes of the EFS collection, margin lending facilities may be provided to households or private and public sector businesses.

                        It includes:

                             * fixed term loans; and
                             * revolving credit.

Market data services    Market data services are expenses paid to external market data providers  for research or statistical services. Such providers include Bloomberg and IRESS.

                        Includes costs for individual terminals and system feeds.

Market value            Means the value as determined by market prices.

                        Market prices refer to the value at which non-financial and financial assets are exchanged or else could be exchanged for cash (currency or transaction deposits). They are the amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties and on the basis of commercial consideration only (i.e. at 'arm's length').

Medium (business size)  A business is classified as medium if the ADI or RFC has a total exposure to the business that is greater than or equal to $1.5 million and the business has turnover of less than $75 million.

                        Include exposures classified by ADIs using the internal ratings-based approach to credit risk as 'SME Corporate' in this category.

Merchant fees charged   Means fees charged to merchants for providing payment processing services.

                        It includes:

                             * per-transaction merchant fees charged; and
                             * non-transaction merchant fees charged.

N

Negotiable certificate of deposit                                   Means negotiable-bearer debt securities. They are issued at a discount to the face value, can be traded in the secondary market and do not require endorsement when sold.  Include transferable certificates of deposit.

Newly erected dwelling                                              Refers