Saudi Banks Research Articles

EVALUATION OF SHARI'AH GOVERNANCE PRACTICES IN SAUDI ARABIAN BANKS

Islamic banking is witnessing a significant increase in worldwide demand for its products alongside the increased interest in Sharīʿah governance, which is an essential means of ensuring that the products and activities of Islamic banking institutions fully comply with Sharīʿah (Islamic law), meet customer needs, and increase their competitiveness in both local and international markets. The aim of this paper is to evaluate Sharīʿah governance practices in Saudi Arabian banks and also ‎examine the level of adherence to Sharīʿah governance principles, institutional ‎frameworks, regulatory standards, and procedures within Saudi banks. This paper ‎employs a descriptive analysis approach, while the data were collected through a ‎questionnaire survey from 95 members of Sharīʿah advisory boards, Sharīʿah groups, and Sharīʿah governance committees ‎in 11 banks operating in Saudi Arabia. A regression analysis was performed to estimate relationships between the level of compliance and commitment to Sharīʿah governance in Saudi banks as a dependent variable, and the implementation of Sharīʿah governance, its dimensions, and the availability of implementing procedures of Sharīʿah governance as independent variables. The findings confirm the existence of variations between banks at ‎the level of implementing Sharīʿah governance principles and standards. The dimensions ‎of Sharīʿah governance received varying levels of attention in the banks, with ‎organizational structure ranking first, followed by the dimensions of responsibility and ‎disclosure, and finally, control, auditing, and accountability. The study reveals ‎disparities in the implementation levels of Sharīʿah governance between banks with full-fledged Sharīʿah compliance and conventional banks that offer Islamic windows. ‎Additionally, the study indicates differences in the adequacy of implementing ‎procedures for Sharīʿahgovernance principles and standards in both types of Saudi banks, attributed ‎to variations in bank size, product type, and organizational structure. The results of ‎the regression analysis demonstrate that the ‎implementation of Sharīʿah governance dimensions and the availability of implementing ‎procedures have a statistically positive effect on the level of commitment to Islamic banking and Sharīʿah governance. The paper suggests a necessity for training personnel in Islamic ‎banking, activating the role of Sharīʿah compliance units, and developing the ‎Sharīʿah governance framework in Islamic banking operations in Saudi Arabia.

Banking Transparency, Financial Information and Liquidity Risk Management: Case of Saudi Banks

The article aims to assess the impact of banking transparency on liquidity risk. To do so, we first test the determinants of Liquidity Coverage Ratio (LCR) as well as ensure the resilience of the Saudi banking system over the period from 2014 to 2021. Using System GMM with bank-specific and macroeconomic variables, results show that capital adequacy ratio, SIZE, GDP growth as well as past LCR levels significantly influence the LCR.  Secondly, we adopt the Panel Vector Auto Regression (PVAR) approach to assess the response of the LCR to various shocks. Impulse Response Functions (IRF) and variance decomposition demonstrate that the shocks to past LCR, AQ, CAR and GDP increase future liquidity risk. Thirdly, we prove that Saudi banks implement less than 50% of the transparency dimensions. They mainly disclose financial information and information on information credibility. Barely 18% of information on non-financial components of banking activity is made available to the public. Information on liquidity risk and on the timeliness of information is not available either in annual reports or on the bank's website. On average, the banks in the sample do not give importance to the publication of reports. These results may undermine the effectiveness of the guidelines of the Basel Committee agreements to reduce risk-taking by Saudi banks.

Short- and long-term impacts of merger activities in the banking industry: evidence from an emerging market

PurposeThis study aims to examine in depth the impact of merger activities on banks in Saudi Arabia.Design/methodology/approachEvent study, financial ratio and efficient frontier analyses with a mixture of parametric and non-parametric tests are used for the sample period 2016Q1–2022Q4.FindingsEvent study analysis shows that merging banks (bidders) have higher positive cumulative abnormal returns than merged banks (targets), indicating that investors believe that bidding banks will benefit the most from the merger strategy. It was also found that the efficiency measures of the combined banks of Saudi British Bank and Alawwal Bank deteriorated, while they improved for the combined banks of National Commercial Bank and Saudi American Bank in the post-merger period, confirming investors' views.Research limitations/implicationsAlthough the study focuses on the Saudi banking sector, its findings could be generalized to other banks in the region, as the Saudi banking sector is one of the largest in the Middle East region and is expected to grow further in the future.Practical implicationsThe mere act of merging two banks does not guarantee the realization of cost synergies or efficiency gains. This research shows that mergers are not automatically cost-effective and that their success depends on good integration and restructuring strategies.Originality/valueTo the best of the author's knowledge, this is the first study to provide a comprehensive analysis of the short- and long-term impacts of merger activities in the Saudi banking sector.

Measuring the Psychometric Properties of the Customers' Experience with Banking Electronic Services During the COVID-19 Pandemic

The use of banking electronic services (e-services) increased dramatically during the coronavirus disease (COVID‐19) pandemic. This increase has been associated with failures, defects, and shortcomings in such services. Research on this topic is increasingly using different methodologies. The aim of this study was to examine the psychometric properties (i.e., reliability and validity) of a recently developed scale designed to measure customers’ experiences with banking e-services in Saudi Arabia during the COVID‐19 pandemic. This scale has been reported to have acceptable face and content validity. The quantitative research approach is applied and data is collected through a research survey. The scale’s questionnaire has two parts: one part consists of items on demographic variables (e.g., age, gender, and experience of service failure) and the other of 75 items on topics such as perceived information quality, digital commitment, service satisfaction, and cultural impact on choice of e-banking services. A descriptive-explorative, cross-sectional research design was used in this study, which focused on Saudi banks and utilized a non-probability sample of 555 customers. The scale was subjected to normality testing and did not violate normal distribution assumptions. The scale also showed acceptable levels of sphericity, and the Q–Q plot showed a significant relationship among items, reflecting normal distribution of items. The scale’s internal consistency value was 0.986. The results of a principal component analysis showed that all 75 items loaded above the cutoff point of 0.50 and could be subsumed under four factors: information processing and quality of services, perceived justice, security and safety, and e-services recovery and banking choices. The newly developed scale is valid and reliable for the target population and can be used to measure customers’ experiences with banking e-services. Further testing is warranted to ensure the scale’s suitability and stability over time and for other populations.

Determinants of Accounting -Based and Value- Based Performance Indicators: The Case of the Saudi Banks

The study aimed to investigate determinants of both Accounting -Based and Value- Based Performance Indicators of the Saudi banks listed on the Saudi capital market during 2013-2022.The study used the panel data methodology for least squared regression models and fixed effect regression model to test the robustness of the results. The study used ROA, ROE, and EPS as proxies for accounting- based profit indicators, while the study used MVA, EVA, and Tobin’s Q as proxies for value -based performance indicators. The study used bank –specific, industry-specific and macroeconomic –specific determinants. The results of the study were mixed and more sensitive to model choices. The least squared regression models worked better than fixed effect regression models in terms of explanatory power and capturing several determinants for value -based performance indicators. However, fixed effect regression models worked better than least squared regression models as they captured the impact of risk measured by Z score as a proxy for forward-looking risk as banks with greater scores had better profits. In addition, the results showed that all independent variables were good determinants except for capital adequacy ratio and market share. In addition, there were common determinants for both types of indicators such as operating efficiency, financial leverage, and bank size. ROE was better than ROA in terms of explanatory power. In addition, the study revealed that Weak correlations were found between accounting –based and value- based indicators, and therefore, they were complementary not alternatives. The results of the study will be useful to many stakeholders such as bank management, shareholders, policy maker and external auditors.

Do Banks in Saudi Arabia Manage Earning Using Discretionary Components?

This study aimed to examine whether banks in Saudi Arabia used discretionary components for loan and investment portfolios in managing earnings as this study was conducted on all banks registered on Saudi Arabia Stock Market (TASI) for the period 2013-2022. The study also aimed to determine the impact of the discretionary component of the allocations for loan losses on both profitability metrics and market metrics. To achieve objectives of the study, two metrics were used as proxies for managing earnings. The first metric used both the discretionary components of the allocations for loan losses and the realized gains and losses of investment portfolio. The second metric used only the discretionary component of the allocations for loan losses of the credit portfolio. The study relied on the quantitative approach as the study used regression models and correlations to test the study’s hypotheses. The results of the first metric of earnings management indicated that the determinants of earnings management were financial leverage, total assets, net operating profit, GDP growth rate, while the capital adequacy ratio was not one of the determinants of earnings management. The results of the second metric of earnings management indicated that the discretionary component of the allocations for loan losses had positive impacts on return on assets, return on equity, earnings per share, share price and annual share returns. That is, investors realized that the allocations for loan losses contained a discretionary component that will be converted into future earnings and cash flows, and investors look at the discretionary component positively. According to the signal theory, Saudi banks used the allocations for loan losses to transmit positive signals about the levels of the profits in the future. The results of this study have significant implications on the decisions of investors, supervisory authorities, bank managers and external auditors.

Facilitating Condition of Acceptance and Use of Islamic Financial Technology (Islamic Fintech): Technological Forecasting in Saudi Banks

This paper aims to facilitating condition on behavioral intention using Islamic financial technology (Islamic Fintech). This paper reviews the most recent literature differences between UTAUT (Unified Theory of Acceptance, and Use of Technology) and UTAUT 2 (Unified Theory of Acceptance, and Use of Technology). Academic degree was one of the contributes to management in this study to bridging the knowledge gap by integrating eight theories of technology acceptance models (TAMs). These theories hold that there are seven models accepted on behavioral intention. Acceptance model's explanatory strength can be demonstrated by the analysis of N = 950 responses from respondents about Islamic Fintech use on the Saudi Stock Exchange (Tadawul) website, which shows that these theories play a moderating role. These theories provide many tests to demonstrate the model's explanatory strength. The results indicated a very high significance for the target variables at a 95% confidence level. There was a significant reduction in the relationship between Effort Expectancy and Behavioral Intention when the average age was considered, which resulted in a 54% and 29.9% increase in the explanatory power of the survey. It was unexpected to find that Language moderates the relationship between Hedonic Motivation and Behavioral Intention by factors of 29.9% and 31.5%, respectively. According to Behavioral Intention and Usage Behaviour must be differentiated, and to achieve technological forecasting goal in Saudi Banks, Islamic Fintech will need to increase R-squared by 57.1%. Meanwhile, Academic Degree provide a facilitating condition between BI and Use Behavior to distinguish between acceptance and use of Islamic Fintech, where the interdependence of social, environmental, and technological factors, all of which was analyzed using partial least squares structural equation modeling.

Exploring Factors to Improve Intentions to Adopt Cybersecurity: A Study of Saudi Banking Sector

Exploring Factors to Improve Intentions to Adopt Cybersecurity: A Study of Saudi Banking Sector

Implementation of Aaoifi Standard No.35 by Saudi Islamic Banks: Opportunities and Challenges

Purpose of the study: The research aims to study and analyze the reality of reserves in Islamic banks in light of Financial Accounting Standard No. 35 issued by AAOIFI in 2018. In addition to determining the accounting irregularities or errors, in the practice of accounting and disclosure related to reserves in Saudi Islamic banks. Theoretical Framework: The research is based on the financial standards of the Islamic banks. Recent financial crises have prompted increased attention from the international community on the need for domestic financial institutions to be strengthened in order to better withstand subsequent emergencies. To ensure national and international financial stability, standards have been developed and implemented to encourage better policies and stronger institutional and market foundations. The international standards community's initiatives provide a comprehensive approach to promote the financial standards of the Islamic banks. It is crucial that self-assessments be supplemented with an impartial external check on conformity with standards. Design/Methodology/Population: The researchers applied the inductive analytical approach for evaluating the financial standards of the Islamic banks. The study population consists Islamic banks In Saudi Arabia: Bank Albilad, Al-Rajhi Bank, and Alinma Bank. The research analyzed the financial statements of three Islamic banks. Findings: The research concluded that all Saudi Islamic banks do not apply the accounting standards issued by AAOIFI. These bank's financial statements do not reflect the reality of their financial position, because they only apply traditional accounting standards. The Saudi Islamic banks do not apply the accounting standard issued by AAOIFI Standard No.35. The reasons behind the non-application of Islamic accounting standards issued by the AAOIFI in Saudi Islamic banks are the Saudi Banking Law and the instructions of the Saudi Central Bank. In addition, shareholders in Islamic banks bear all reserves and provisions. Research, Practical and Social Implications: The research suggests that banking supervisory authorities in the Kingdom of Saudi Arabia have to take the necessary measures to amend the laws and instructions related to Islamic banks., and to follow up efforts by AAOIFI with central banks in the countries in which Islamic banks operate to oblige Islamic banks to the accounting standards issued by AAOIFI. Originality/Value: The research is unique in identifying the importance of the AAOIFI standards in improving the financial standards of the Islamic banks.

The Impact of Applying Governance Mechanisms on Corporate Social Responsibility Disclosure in Saudi Banks

هدفت الدراسة إلى معرفة أثر تطبيق آليات الحوكمة على الإفصاح عن المسؤولية الاجتماعية في البنوك السعودية وذلك من خلال دراسة أثر كلاً من حجم مجلس الإدارة؛ استقلالية المجلس؛ وحجم لجنة المراجعة ونشاطها، على هذا النوع من الإفصاح. ولتحقيق هذا الهدف تم الاعتماد على المنهج الاستقرائي لتكوين الإطار النظري، والمنهج الوصفي التحليلي في الجانب التطبيقي من الدراسة. تم جمع بيانات البنوك السعودية محل الدراسة عن الفترة (2018-2021م) من خلال التقارير السنوية المنشورة على موقع تداول. وأيضاً قامت الباحثتان ببناء مؤشر لقياس الإفصاح عن المسؤولية الاجتماعية اشتمل على 26 عنصر من عناصر المسؤولية الاجتماعية، كما تم استخدام اختبار تحليل الانحدار الخطي المتعدد لاختبار الفروض. أشارت نتائج الدراسة إلى وجود أثر لآليات الحوكمة المتمثلة في حجم مجلس الإدارة؛ وحجم لجنة المراجعة على الإفصاح عن المسؤولية الاجتماعية في البنوك السعودية. بينما لا يوجد أثر لكلاً من استقلالية المجلس ونشاط لجنة المراجعة على الإفصاح عن المسؤولية الاجتماعية في البنوك السعودية. تحديداً أشارت النتائج إلى وجود علاقة ارتباط طردية معنوية بين كلاً من حجم مجلس الإدارة وحجم لجنة المراجعة والإفصاح عن المسؤولية الاجتماعية، في حين أن هناك علاقة ارتباط طردية غير معنوية بين استقلالية المجلس والإفصاح. خلصت الدراسة لعدة توصيات أهمها: ضرورة قيام الجهات التنظيمية بوضع مؤشر خاص بالإفصاح وممارسات المسؤولية الاجتماعية ليكون بمثابة دليل استرشادي لمنظمات الأعمال؛ وليمثل مرجعية للباحثين المهتمين بمجال المسؤولية الاجتماعية. كما توصي الدراسة بعمل دراسات مستقبلية يتم من خلالها اختبار آليات أخرى للحوكمة مختلفة عن الآليات المستخدمة في الدراسة الحالية وبيان أثرها على الإفصاح عن المسؤولية الاجتماعية من حيث نوعية الإفصاح وجودته.

DIGITAL TRANSFORMATION OF SAUDI ARABIA’S BANKING: A COMPARATIVE STUDY

Banks' digital transformation has become a growing and competitive research area in the last decade. This study aims to compare the digital transformation of the Saudi banking sector with that of developed and emerging Islamic countries by examining progress, digital solutions to banking services provided, and regulatory frameworks. To this end, a systematic review was conducted, analyzing 44 primary documents and seven websites collected through a 5-step process: scoping, planning, searching, selection, and eligibility. Next, a comparative analysis of these documents was conducted, analyzing the similarities and differences of the digital transformation processes addressed by Saudi Arabia, the U.S., the United Kingdom, and Malaysia. The findings revealed that Saudi Arabia and Malaysia have banking sectors of similar size, smaller than those of the U.S. and the U.K., although all of these sectors are of significant importance in the economies of their respective countries, as measured by their share in GDP. All countries have adopted similar digital technologies and offer very similar banking services. Concerning its regulatory frameworks, the U.K.'s sandbox approach is the most effective and inspiring. At the same time, the U.S. needs to catch up due to its regulatory complexities and differences in approach between federal and state jurisdictions. For their part, Saudi Arabia and Malaysia have developed their regulatory frameworks with approaches inspired by the U.K. model, although both differ in the degree of Sharia compliance.

Examining the mediating effect of multi-channel integration quality in the relationship with service quality, customer satisfaction and customer loyalty in the Saudi banking sector

PurposeSince banks do not sell tangible products, they rely heavily on customer interactions and retention, which requires service quality, customer satisfaction and customer loyalty. Banks must innovate and develop new services and expand customer engagement efforts beyond stores, kiosks, direct mail and websites to include social media, mobile applications and location-based services in order to meet their customers’ growing demands. A multi-channel strategy that integrates the offline and online presences of banks can increase quality, customer satisfaction and loyalty. This paper aimed to use a service quality scale to: (1) examine the association between service quality and customer satisfaction; (2) examine the association between customer satisfaction and customer loyalty; (3) examine the indirect association between service quality and customer loyalty through customer satisfaction; and (4) examine the mediation effect of multi-channel integration quality in the relationships between service quality, customer satisfaction and customer loyalty.Design/methodology/approachThe data was obtained from banks in Saudi Arabia. The analysis was based on an online survey of 265 Saudi bank customers. The multi-channel integration quality model and Statistical Package for the Social Sciences (SPSS) were used to test the proposed hypothesis and conduct the analysis.FindingsThe results found that there was a statistically significant link between service quality and customer satisfaction in the Saudi banking industry. Service quality did not directly affect customer loyalty. When multi-channel integration quality was moderate to high, service quality affected customer loyalty through customer satisfaction. For service quality and customer loyalty in the Saudi banking sector to be achieved, customers must be satisfied, but also the bank’s brand must manage the quality of integration channels provided to them with care, and thus branding plays a key role in achieving customer loyalty in the Saudi banking sector.Originality/valueThe academic community has provided little evidence to support how the relationships between constructs such as service quality, customer satisfaction, customer loyalty and multi-channel integration quality apply to the Saudi banking sector. A conceptual framework was proposed to show how these constructs affect the Saudi banking sector. An empirical study was conducted to see how the framework held up in banking settings. The conceptual framework serves to advance the fields of business and management and banking and their respected literature, as well as advance the understanding of multi-channel integration in boosting customer satisfaction and loyalty through high service quality in the Saudi banking sector.

The Impact of CKM and Customer Satisfaction on Customer Loyalty in Saudi Banking Sector: The Mediating Role of Customer Trust

This study aims to explore the role of customer knowledge management (CKM) and satisfaction as antecedents of customer trust, and the mediating function of customer trust in the knowledge–loyalty and satisfaction–loyalty in the Saudi banking sector. This study intends to provide light on the significance of CKM and the ways in which it can support consumer trust, loyalty, and satisfaction. Data came from 600 consumers who responded to an online survey. By using regression analysis and descriptive statistics, seven hypotheses were created and tested. The findings exhibited that customer trust has a major impact on loyalty and that customer trust is positively impacted by CKM and satisfaction. Additionally, trust partially mediates the relationship between knowledge, loyalty, and satisfaction. The study contributes to the literature by examining the factors that influence customer loyalty, CKM engagement, satisfaction, and trust in the context of the Saudi banking industry. These research findings are helpful for managers and strategists in figuring out how to create customer loyalty programs that are a fit for their target market. The study is limited to the Saudi banking sector and may not be generalizable to other industries. Additionally, the study is based on self-reported data from customers, which may not accurately reflect their true opinions and behaviors.

Interest rate, foreign exchange and stock performance in a dual banking industry: evidence from Saudi Arabia

PurposeThis study aims to extend the literature by extensively investigating the impact of foreign exchange and interest rate changes on the returns and volatility of bank stocks in Saudi Arabia, which is the largest dual banking industry.Design/methodology/approachThis study employs the generalized autoregressive conditional heteroscedasticity (GARCH) model on stock returns of four fully Islamic Saudi banks and eight conventional Saudi banks.FindingsThe results showed that the foreign exchange rate return has a positive impact on Saudi conventional bank returns, while it has an adverse impact on Saudi Islamic bank returns. Moreover, a higher interest rate return has a positive impact on Saudi bank stock returns implying that the assets side is more sensitive to changes in interest rates than the liability side. Finally, higher foreign exchange and interest rates volatility increases the volatility of Saudi bank returns, where the former has the largest significant impact. Therefore, Saudi regulators should pay more attention to the risk management of their banks because this could threaten the stability of their financial system.Originality/valueTo the best knowledge of the author, this is the first study that tries to extensively analyze the joint impact of foreign exchange and interest rates on bank stock returns and volatility in Saudi Arabia by applying the GARCH model. The study uses a long data set from 2010 to 2019 that includes all Saudi banks and employs four measures of interest rates to increase the robustness of the results.

Saudi Banks Level of Compliance with Accounting Standards of Accounting and Auditing Organization for Islamic Financial Institutions

Saudi Banks Level of Compliance with Accounting Standards of Accounting and Auditing Organization for Islamic Financial Institutions

The Gender Gap in Senior Management: What Is Holding Saudi Women Back?

This research study reviews Saudi women in the top management and how they could have the potential to contribute to economic growth and can help to improve the public status and image of Saudi women. This study is highly important because it comes at a time when the Saudi government has plans to encourage the development and advancement of women to be empowered and participated in decision-making. The research study aims to facilitate the advancement of Saudi women to senior management positions by offering practical recommendations based on an understanding of the real-world challenges and practices that can hinder as well as help the advancement of Saudi women. This aim assesses the barriers facing women in becoming executives in the Saudi banking sector and evaluates the effectiveness of strategies that women use to overcome barriers to advancement into the Saudi banking sector. Finally, the research found that  gender discrimination, cultural beliefs and  lack of empowerment can hinder Saudi women from reaching senior management positions in the Saudi banking sector.

Measuring the X-Efficiency of Saudi Banks: Case Study Pre and Post-Coronavirus Crisis

By specifying a translog cost function and applying the DFA (Data Frontier Approach) model, the objective of this paper was to determine the x-efficiency, economies of scale and economies of scope for Saudi banks during the period 2017-2022. Subsequently, the model compares bank efficiency before and after corona pandemic. The empirical results indicate that the measure of x-inefficiency (around 7% to 19% of costs) dominates scale inefficiency (around 5% of costs), moreover, there is no difference in efficiency before and after the coronavirus pandemic.

Developing an Abstraction Framework for Managing and Controlling Saudi Banks’ Cybersecurity Threats Based on the NIST Cybersecurity Framework and ISO/IEC 27001

Developing an Abstraction Framework for Managing and Controlling Saudi Banks’ Cybersecurity Threats Based on the NIST Cybersecurity Framework and ISO/IEC 27001

Impact of Non-Performing Loans on Saudi Bank Profitability

Non-performing loans (NPLs) have become increasingly worrying to the Saudi banking sector. Sanctioned loans have a repayment schedule, including principal and interest amounts. Excessive defaults on loans leads to a liquidity crisis throughout the banking sector, and can even cause bank failure. As a result, banks have to cover non-performing loans and maintain reserves under the instructions of the Saudi Arabia Central Bank, which severely affects profitability. This study analyzes the comparative position of non-performing loans in the Saudi banking sector over the period 2009-2017 to determine causes and impacts on bank profitability, using data from annual reports. The study variables are profitability (ROA and ROE) as the dependent variable, and non-performing loans ratio (NPLR) as the independent variable. The data was analyzed by correlation, regression, and analysis of variance (ANOVA) using SPSS. The empirical results represent that NBLR has a negative influence on the dependent variable.

Board Structure and Stock Market Liquidity: Evidence from Saudi's Banking Industry

This paper aims to explore the impact of corporate governance on banks’ stock market liquidity. Specifically, we examine the influence of one of the most important corporate governance mechanisms, board structure, on the stock market liquidity of listed banks in Saudi Arabia. We mainly concentrate on four characteristics of board structure: board size, board independence, board meetings and board busyness, and their impact on bid–ask spread, trading volume, turnover ratio and number of trades (employed as proxies of stock liquidity). This study employs a pooled ordinary least squares (OLS) model to investigate this relationship. Furthermore, we use a lag approach and the generalized method of moments (GMM) estimation to test for endogeneity issues. The findings of the two models are the same as the main estimation model of the OLS. Using a sample of 108 observations representing all banks listed on the Saudi Stock Market (TASI) from 2010 to 2020, we find a positive and significant association between board size and board independence with stock liquidity. However, board busyness is negatively associated with stock liquidity. Furthermore, we examine the relationship between board structure and agency problems. The results show that board size and board independence reduce agency problems, whereas board busyness increases agency problems. The findings of this paper provide implications for Saudi regulators, banks’ board of directors and banks’ shareholders.