Page 196 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Liquidity risk management (cont’d)
No specific Less than 3 to 12 1 to 5 Over
maturity 3 months months years 5 years Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group and Bank
2023

Financial liabilities
Borrowings - 363,124 1,297,893 2,083,464 478,508 4,222,989
Other payables 430,656 - 1,165 1,521 - 433,342
Derivative financial
instruments - - 82,293 150,893 - 233,186
430,656 363,124 1,381,351 2,235,878 478,508 4,889,517

Commitments and contingencies
Banking operation commitments
Contracted but not provided for:
Guarantee facility 117,459 - - - - 117,459
Letter of credit 286 - - - - 286
Undrawn loans and financing 1,049,679 - - - - 1,049,679
1,167,424 - - - - 1,167,424

Credit risk management

Approach and risk strategy
The Group and the Bank recognise that credit risk is inherent in its banking and insurance activities. The main objective of
the Group’s and the Bank’s credit risk management is to ensure that exposure to credit risk is always kept within its capability
and financial capacity to withstand potential future losses.
The Group’s and the Bank’s strategies in credit risk management are:

• Consistent credit approving standards are applied in each of its credit decision process;
• All credit decisions are within credit risk tolerance that the Group and the Bank are willing to take in meeting its mandated
role;
• All credit risk inherent in business activities of the Group and the Bank are comprehensively identified, measured and
managed;
• Ensure the Group and the Bank hold adequate capital against credit risk and adequately compensated for risks assumed;
• Regular credit review is performed as an effective tool to constantly evaluate the quality of credits given and adherence
to the credit process;
• The composition and quality of the Group’s and the Bank’s credit portfolio are constantly monitored to identify and
manage concentrations risk; and
• Conduct stress testing on the Group’s and the Bank’s credit portfolio to identify possible events or future changes
in economic conditions that could have favourable effects to its credit exposures and assess the Groups and the Bank’s
ability to withstand such changes.