Banks should concentrate their lending on those types of loans in which they have the greatest cost advantage.

Question

Quizplus · Accepted Answer

By concentrating on loans in which they have the greatest cost advantage, banks can optimize their profitability and efficiency. It allows banks to focus their resources on areas where they can offer the most attractive rates and terms, and hence increase their customer base. Additionally, concentrating on these areas can help banks achieve scale and operational efficiencies, thereby reducing their overall costs and increasing profitability.

Banks Should Concentrate Their Lending on Those Types of Loans