Page 183 - Exim iar24_Ebook

EXIM BANK MALAYSIA ANNUAL REPORT 2024

7 FINANCIAL STATEMENTS 181
NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Market risk management (cont’d)
Foreign exchange (“FX”) risk arises as a result of movements in relative currencies due to the Group’s operating business
activities and structural foreign exchange exposures from foreign investments and capital management activities.
Generally, the Group is exposed to three types of foreign exchange risk such as translation risk, transactional risk and
economic risk which are managed in accordance with the market risk policy and limits. The Group controls its FX exposures
by transacting in permissible currencies. It has an internal FX NOP to measure, control and monitor its FX risk and implements
FX hedging strategies to minimise FX exposures. Stress testing is conducted periodically to ensure sufficient capital buffer
on FX risk.
United Great
states Singapore Britain Australian
dollar Euro dollar Pound dollar Others
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group and Bank
2024
Assets
Cash and bank balances 3,832 3,969 96 2,314 925 108
Deposits and placements
with banks and other
financial institutions 947,836 24,733 - 13,318 18,042 -
Investment securities 79,230 - - - - -
Loans, advances
and financing 1,829,279 102,850 1,059 234,342 18,573 -
Other assets 36,214 1,175 - 17 98 -

2,896,391 132,727 1,155 249,991 37,638 108

Liabilities
Borrowings 2,904,004 128,222 - 231,651 14,465 -
Other payables & accruals 65,130 1,012 977 4,160 2,680 70
Derivative financial
instruments 110,854 - - - - -
Provision for commitment
& contingencies 20,789 - - - - -
3,100,777 129,234 977 235,811 17,145 70

On-balance sheet
open position (204,386) 3,493 178 14,180 20,493 38

Add/(less): Net forward
position - - - - - -
Net open position
(liabilities)/assets (204,386) 3,493 178 14,180 20,493 38