Banking Strategies for Competitive Advantage

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What is one way the bank can establish a distinct identity in the face of fierce competition?

Hiring unqualified staff

Investing in real estate properties

Reducing customer services

Improving advertising efforts (correct)

Why is it important for banks to show the relevance and utility of their services to customers?

To confuse the customers

To discourage customers from using banking services

To attract and retain customers (correct)

To benefit from direct contact with customers

What is a key challenge faced by banks due to the variety and diversity of banking services?

Meeting diverse needs efficiently (correct)

Decreasing the number of services offered

Avoiding innovation in services

Limiting customer options

Why is predicting future demand for banking services challenging according to the text?

Because demand fluctuates due to economic conditions Signup and view all the answers

What should banks consider when balancing growth and expansion in banking services?

Considering risks that could arise Signup and view all the answers

In the context of fierce competition, why is it essential for banks to innovate new products?

To attract more customers and stand out Signup and view all the answers

What is the role of the Council of Ministers in regards to bank establishment licenses?

Issuing licenses based on recommendations of the Minister of Finance Signup and view all the answers

What is one of the basic principles of effective competition in a stable financial system?

Promoting innovation and efficiency Signup and view all the answers

How are banking services defined in the text?

Activities provided by banks to satisfy customer needs Signup and view all the answers

What is a characteristic of banking services according to the text?

Services can be intangible and not result in ownership transfer Signup and view all the answers

In the context of banking services, what does 'lack of unique identity' mean?

Banks have identical service offerings Signup and view all the answers

What role does SAMA play in the issuance of bank establishment licenses?

Reviewing applications before licenses are granted Signup and view all the answers

Which of the following is a restriction placed on banks by Article (10) of the Banking Control Law?

Owning stocks exceeding 20% of the bank’s paid-up capital Signup and view all the answers

What type of activities are banks prohibited from engaging in according to Article (10) of the Banking Control Law?

Wholesale or retail trade Signup and view all the answers

Which of the following financial actions is forbidden for banks in relation to their own shares?

Issuing guarantees based on their shares Signup and view all the answers

In accordance with the Banking Control Law, which action is not permitted for banks regarding their Board members or Auditors?

Granting loans without security Signup and view all the answers

What is the maximum percentage of a joint-stock company's paid-up capital that a bank can own shares of, according to the Banking Control Law?

20% Signup and view all the answers

Which financial activity is not allowed for banks with respect to their employees, as stated in Article (9) of the Banking Control Law?

Granting loans exceeding four-month salary Signup and view all the answers

Banking Strategies for Competitive Advantage

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