Banking · Banking Ethics

Consider the following statements regarding governance and ethics in banking: Statement 1: A bank's Board of Directors is ethically responsible for setting the 'Tone at the Top,' ensuring profit targets do not override compliance. Statement 2: The concept of 'Social Banking' requires banks to evaluate the social impact of lending alongside financial returns, such as promoting financial inclusion. Statement 3: Ethical dilemmas often arise when an action is technically legal but morally questionable, such as charging excessive penalty interest on small loans. Based on these statements, which of the following is true regarding the changing dynamics of banking ethics?