Saudi Arabia’s Arab National Bank (ANB) has received approval from the Saudi Arabian Monetary Authority (Sama) to set up a fully-owned subsidiary to trade derivatives and repo agreements.

The Cayman Islands-based unit of the ANB will have no impact on the current financial statements, the bank said in a statement to Saudi Stock Exchange, where its shares are traded.

Alawwal Bank, which swung to a fourth-quarter loss on rising operating costs on the back of a spike in credit losses, last week said it has also received Sama approval to launch a fully-owned subsidiary that could trade derivatives and repo agreements.