Risk-taking is part and parcel of several organizations. In practical sense, risk management assisted the organization in meeting their underline objectives in spite of associated risks. To achieve this, financial institutions employs risk policies as well as frameworks that is suitable for their business operations. This study presents financial performance enhancement model for banking industry in the Kingdom of Saudi Arabia. This study aim to review impact of regulation on risk management and explore effectiveness of the role of board directors between capital adequacy and risk management. This study evaluates board director’s effectiveness based on five characteristics; size, independence, meeting, age diversity, and board committee.
Abdelrahim, K. (2013). Effectiveness of Credit Risk Management of Saudi Banks in the Light of Global Financial Crisis: A Qualitative Study. Asian Transactions on Basic and Applied Sciences, 03(02), 2221–4291. Retrieved from http://asian-
transactions.org/Journals/Vol03Issue02/ATBAS/ATBAS-10305028.pdf
Acharya, V. V., Cooley, T. F., Richardson, M. P., & Walter, I. (2011). Market Failures and Regulatory Failures: Lessons from Past and Present Financial Crises. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1757711
Adams, R. B., & Mehran, H. (2003). Is Corporate Governance Different for Bank Holding Companies? Economic Policy Review, 9(1).
Adams, R., & Mehran, H. (2012). Bank board structure and performance: Evidence for large bank holding companies. Journal of Financial Intermediation, 21(2), 243–267.
Aebi, V., Sabato, G., & Schmid, M. (2012). Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking and Finance, 36(12), 3213–3226. https://doi.org/10.1016/j.jbankfin.2011.10.020
Agoraki, M. E. K., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk-taking in transition countries. Journal of Financial Stability, 7(1), 38–48. https://doi.org/10.1016/j.jfs.2009.08.002
Ahmed, N., Ahmed, Z., & Naqvi, I. H. (2011). Liquidity Risk and Islamic Banks?: Evidence from Pakistan. Interdisciplinary Journal of Research in Business, 1(9), 99–102. https://doi.org/10.1016/j.conengprac.2007.02.010
Akpan, E. O., & Amran, N. A. (2014). Board characteristics and company performance: Evidence from Nigeria. Journal of Finance and Accounting, 2(3), 81–89.
Al-Maghzom, A., Hussainey, K., & Aly, D. (2016). The level of Risk Disclosure in Listed Banks?: Evidence from Saudi Arabia. Corporate Ownership and Control, 14(1), 175–194.
Alexander, G. J., Baptista, A. M., & Yan, S. (2013). A comparison of the original and revised Basel market risk frameworks for regulating bank capital. Journal of Economic Behavior & Organization, 85, 249–268.
Allen, F., & Gale, D. (2004). Financial Intermediaries and Markets. Econometrica, 72(4), 1023–1061.
Alzgool, M. (2019). Nexus between Green HRM and Green Management towards Fostering Green Values. Management Science Letters, 9(12), 2073-2082.
Ames, M., Schuermann, T., & Scott, H. S. (2015). Bank capital for operational risk: A tale of fragility and instability”. Journal of Risk Management in Financial Institutions, 8(3), 227–243.
Amran, A., Ishak, M. S., Zulkafli, A. H., & Nejati, M. (2010). Board structure and extent of corporate governance statement. International Journal of Managerial and Financial Accounting, 2(4), 383–400.
Amran, N. A. (2011). Corporate Governance Mechanisms and Company Performance?: Evidence from Malaysian Companies. International Review of Business Research Papers, 7(6), 101–114.
Ayadi, N., & Boujelbene, Y. (2014). The role of capital regulation on bank performance. International Journal of Managerial and Financial Accounting, 6(3), 203–226.
Babihuga, R. (2007). Macroeconomic and Financial Soundness Indicators?: An Empirical Investigation (No. 7-115).
Bansal, N., & Sharma, A. (2016). Audit Committee,Corporate Governance and Firm Performance:Empirical Evidence from India. International Journal of Economics and Finance, 8(3).
Barnhart, S. W., Marr, M. W., & Rosenstein, S. (1994). Firm performance and board composition: Some new evidence, 15(4), 329–340.
Barth, J. R., Caprio, Jr, G., & Levine, R. (2004). Bank regulation and supervision: what works best? Journal of Financial Intermediation, 13(2), 205–248.
Basel Committee on Banking Supervision. (2005). Amendment to the Capital Accord to Incorporate Market Risks.
Basel Committee on Banking Supervision. (2006). International Convergence of Capital Measurement and Capital Standards.
Basel Committee on Banking Supervision. (2015). Basel Committee on Banking Supervision Guidelines Corporate governance principles for banks.
Basle. (1988). Basle Committee on Bank
In-Text Citation: (Althubaiti & Rasid, 2020)
To Cite this Article: Althubaiti, S. A., & Rasid, S. S. A. (2020). Conceptual Framework of Bank’s Financial Stability, Governance Mechanisms, Regulation and Risk Management in the Kingdom of Saudi Arabia. International Journal of Academic Research in Business and Social Sciences, 10(3), 54–76.
Copyright: © 2020 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
