National Commercial Bank , Saudi Arabia's largest lender, has received regulatory approval to set up a subsidiary to engage in derivatives trading and repo activities, the lender said on Tuesday.

The Cayman Islands-based unit, The Saudi National Commercial Bank Markets Limited, will be 100 percent owned by NCB and have a paid-up capital of $50,000, a bourse statement said.

NCB said there would be no financial impact on NCB's current financial statements due to the establishment of the company. - Reuters