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EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS
41. CREDIT EXPOSURE ARISING FROM FINANCING FACILITIES WITH CONNECTED PARTIES
The credit exposures disclosed below are based on the requirements of Paragraphs 2.1 and 9.1 of Bank Negara Malaysia’s
Guidelines on Credit Transactions and Exposures with Connected Parties. Based on this guideline, a connected party refers to:
(i) Controlling of the shareholder of the Bank and its close relatives;
(ii) Firm, partnerships, companies or any legal entities which control, or are controlled by any person listed in (i) above, or in
which they have an interest, as a director, partner, executive officer, agent or guarantor, and their subsidiaries or entities
contolled by them;
(iii) Any person for whom the person listed in (i) above is a guarantor; and
(iv) Subsidiaries of or an enity contorolled by the Bank and its connected parties.
The Group’s and the Bank’s credit exposure arising from financing facilities with connected parties are as disclosed below:
Group and Bank
2024 2023
RM’000 RM’000
Aggregate value of outstanding exposure with connected parties 817,827 738,617
Off-balance sheet exposure 44,755 45,900
Equities and Private Debt Securities (“PDS”) held - 70,000
862,582 854,517
Total exposure to connected parties as % of total capital 49.25% 46.37%
Total exposure to connected parties as % of total outstanding exposures 9.78% 9.67%
42. FINANCIAL RISK MANAGEMENT POLICIES
The Group’s and the Bank’s financial risk management policies seek to enhance shareholder’s value. The Group and the Bank
focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance
of the Bank.
The Risk Management Division (“RMD”) of the Group and the Bank is responsible for formulating policies and the oversight of
credit, market liquidity and operational risks.
Financial risk management is carried out through risk assessment and reviews, internal control systems and adherence to
Group’s and Bank’s financial risk management policies, which are reported to and approved by the Board. The Board also
approves the treasury practices which cover the management of these risks.
The main areas of financial risks faced by the Group and the Bank and the policies are set out as follows:
a. Capital management
Capital management refers to continuous, proactive and systematic process to ensure the Group and the Bank have
sufficient capital in accordance to its risk profile and regulator’s requirements.
