Strategic Response Quotient (SRQ): an interpretation

From: Dr John
To: Adis

In reply to your question:

The SRQ can be viewed from several perspectives and therefore has several implications, notably:

  1. SRQ measures the interest burden of the bank (Net Interest Margin as a proportion of Net Non-Interest Income).
    That is to what extent the bank is "forced" to extend loans (therefore taking increasing credit risks) to cover its Net Non-Interest Cost or a Negative Non-Interest Income.

Bank Risk Management: 14 indicators for consideration

To: Ferry
From: Dr John Vong

Thank you for reminding me of the key indicators that ought to be monitored by bank supervisors, as spoken at the BSMR Indonesia Conference 2010.

There are at least 15 indicators for bank supervisors to monitor pertaining to the level of risk management undertaken in banks.

Most of them are available but some bank supervision authorities might have overlook the importance of Indicators No. 6,7,8 and 13,14, 15 (and comparing them to see the whole picture of what is actually happening in the banks) as an approach to risk management.

What fundamental changes can be expected from Banks?

Dear Readers

Many readers have asked whether there are any recent research articles based on EAGLES and SRQ. The straight answer is there are none.
The reasons are:

  1. We need to plan carefully how, where and when we present our research.
    The banking sector in every nation is a powerful lobby group.
    (My travel visa was nearly revoked twice in 2 countries for presenting research papers on the macroview on weakness of the banking sector. No bank names were disclosed. Many central banks do not wish to hear external researchers telling them the bad news).
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