18 Questions
What is one way the bank can establish a distinct identity in the face of fierce competition?
Improving advertising efforts
Why is it important for banks to show the relevance and utility of their services to customers?
To attract and retain customers
What is a key challenge faced by banks due to the variety and diversity of banking services?
Meeting diverse needs efficiently
Why is predicting future demand for banking services challenging according to the text?
Because demand fluctuates due to economic conditions
What should banks consider when balancing growth and expansion in banking services?
Considering risks that could arise
In the context of fierce competition, why is it essential for banks to innovate new products?
To attract more customers and stand out
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
What is one of the basic principles of effective competition in a stable financial system?
Promoting innovation and efficiency
How are banking services defined in the text?
Activities provided by banks to satisfy customer needs
What is a characteristic of banking services according to the text?
Services can be intangible and not result in ownership transfer
In the context of banking services, what does 'lack of unique identity' mean?
Banks have identical service offerings
What role does SAMA play in the issuance of bank establishment licenses?
Reviewing applications before licenses are granted
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
What type of activities are banks prohibited from engaging in according to Article (10) of the Banking Control Law?
Wholesale or retail trade
Which of the following financial actions is forbidden for banks in relation to their own shares?
Issuing guarantees based on their shares
In accordance with the Banking Control Law, which action is not permitted for banks regarding their Board members or Auditors?
Granting loans without security
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%
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
Learn about the strategies that banks can employ to establish a distinct identity, improve service quality, and attract more customers in the face of fierce competition. Understand the importance of intangible banking services and how banks can demonstrate their relevance and utility to customers.
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