Sr

1
2
3
4

7
8
9
10
11
12
13

Questions (Market Interest)

The loan approval process requires borrower repayment capacity
and loan affordability to be assessed
The loan approval process does not rely solely on guarantees
(whether peer guarantees, co-signers or collateral) as a substitute
for sound risk management.
Credit approval policies give decision makers explicit guidance
regarding borrower debt thresholds and acceptable levels of debt
from other sources
The financial institution avoids increasing debt levels of
borrowers who are already indebted beyond their capacity to
repay, avoiding re-financing the loan at a higher amount, and
adhering to a standard protocol for debt re-structuring
The financial institution offers multiple loan products or flexible
ones that address different business and family needs. The
organization ensures product suitability through careful product
design and testing with the target market
Prices, terms and conditions of financial products are fully
disclosed to the customer, including interest charges, insurance
premiums, minimum balances required on savings and
transaction accounts, all fees, penalties, and whether those can
change over time
Advertisements and marketing campaigns clearly communicate
complete and accurate descriptions of the product or service
Advertisements reflect the product that the customer can
reasonably expect to receive and the full price that the customer
can expect to pay.
Interest rates on savings, fees for account maintenance,
minimum balances required, and terms and costs of transaction
accounts are provided.
Customers are given adequate time to review the terms and
conditions of the product and have an opportunity to ask
questions and receive information prior to signing contracts
The client regularly receives clear and accurate information
regarding the account.
Balances are correct, recorded regularly, and investigated for
discrepancies in a timely manner
Promises of future benefits, discounts, and privileges are kept.

14 management taken steps to ensure that the board of directors

has an adequate understanding of the current and potential
impact that interest rate risk may have on the banks condition

SD

DA N

AG

SA

Profitability

Sr.
1
2
3
4
5
6
7
8
9

10

Questionnaires
To the maximum extent, the loan approval process is favorable for
bank.
Bank provides different products to their customers, each product
give the same output as mentioned in manuals and brochures
Credit approval process is the major sources of income of the
Institute.
While lending to other financial institutions, all of the required
procedure are followed properly as according to the SBP
regulations.
Complete information about assets and liabilities of indebted
individual or institution and repaying ability on fix time adds the
banks earning output.
Over relaxation or loose conditions in repayment process cause
the debtors to delay in returning installments and low profitability
of the institute in the end
High collaterals are not easily available by the debtors. Thats
why the collateral also cause decrease in credit approval process.
Superior quality of insiders, correct management decisions and
regular overview of services take a big part in maximizing the
earnings of respected financial institute.
More achieved target profits than actual profits shown in the
balance sheets and income statement of banks also serve another
tool of raising banks trust resulting increasing investments of
banks.
Consumers trust on public sector is more than private banking

SD
1

DA
2

N
3

AG SA
4
5

11

sector irrespective of the rate of interest in all types of operations

of institute.
There is a strong relationship among service efficiency and
profitability efficiency and the measure of service quality like
reliability, responsiveness and assurance are kept under
consideration.

12

Capital strength of bank is of crucial importance of profitability

and lowering the risk and increasing the performance of bank.

13

Effective CRM leads to better customer experience which gives

strong growth and this loyalty increases the profitability.

14

Flexible interest rating policies gives strong profitability