Page 199 - Exim iar24_Ebook

EXIM BANK MALAYSIA ANNUAL REPORT 2024

7 FINANCIAL STATEMENTS 197
NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Credit risk exposure (cont’d)
Maximum
exposure to Collateral Net
credit risk value exposures
RM’000 RM’000 RM’000
Group and Bank
2023

Credit exposure for on-balance sheet assets:
Cash and bank balances 15,744 - 15,744

Deposits and placements with banks and other financial institutions 1,972,976 - 1,972,976
Financial investments* 734,990 - 734,990

Loans, advances and financing 3,160,467 2,624,091 536,376
Reinsurance contract assets 9,872 - 9,872

Net derivative financial instruments 63 - 63
Other assets excluding tax prepayment 50,335 - 50,335
5,944,447 2,624,091 3,320,356

Credit exposure for off-balance sheet assets:

Banking operations commitments 1,123,012 - 1,123,012
#
7,067,459 2,624,091 4,443,368
* Financial investments exclude investments in equities.
# Banking operation commitments are netting off expected credit losses.

Collateral and credit enhancement
Collateral represents the asset pledged by a customer and/or a third party on behalf of the customer, in whole or in part,
to secure a credit exposure and/or potential credit exposure with the Group and the Bank, and subject to seizure in the event
of default. Collateral provides the Group and the Bank with a secondary source of repayment, i.e. a source of fund to help
recover its investment should the customer be unable to repay the facility obtained from the Group and the Bank.