Comparing the Loan Mix of an Individual FI to a National

question 68

True/False

Comparing the loan mix of an individual FI to a national benchmark loan mix is useful in determining the extent that the individual FI may differ from an efficient portfolio composition.

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Definitions:

Strategic Change

The process of implementing significant adjustments in an organization's direction, operations, or capabilities to respond to internal or external opportunities and challenges.

Grassroots Change

A type of change initiated and driven by community members or lower-level employees, rather than top leadership.

Organic Structures

Refers to an organizational form that is flat, uses low levels of formalization, operates with decentralized decision-making, and encourages high levels of collaboration among employees.

Highly Formalized

Refers to a structure or system with explicit rules, procedures, and standards that are strictly followed.