Page 200 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Credit risk exposure (cont’d)
Collateral and credit enhancement (cont’d)

The Group and the Bank shall consider accepting the collateral based on its marketability, measurability, stability,
transferability, speed in realising the collateral value, enforceability and free from encumbrances. The collateral types and
amounts held by the Group and the Bank are as follows:

2024 2023
RM’000 RM’000
Collateral type

Secured by cash 54,782 119,290
Secured by property 1,321,350 1,481,218
Secured by machinery 517,078 1,023,583
1,893,210 2,624,091

The financial assets that are credit impaired and related collateral held in order to mitigate potential losses are shown below:
Gross Net Fair value
carrying carrying of collateral
amount ECL amount held*
RM’000 RM’000 RM’000 RM’000
2024
Credit impaired financial assets

Loans, advances and financing 2,017,855 1,485,131 532,724 1,147,464
Financial investments at FVOCI 100,000 100,000 - -
Financial investments at amortised cost 334,408 279,948 54,460 -
Total credit impaired financial assets 2,452,263 1,865,079 587,184 1,147,464

Gross Net Fair value
carrying carrying of collateral
amount ECL amount held*
RM’000 RM’000 RM’000 RM’000

2023
Credit impaired financial assets
Loans, advances and financing 2,086,013 1,498,569 587,444 1,300,973
Financial investments at FVOCI 100,000 100,000 - -
Financial investments at amortised cost 342,963 261,706 81,257 -
Total credit impaired financial assets 2,528,976 1,860,275 668,701 1,300,973

* Fair value of collateral held is based on market value. The Group and the Bank apply haircuts and discounting, where necessary, on
collateral held for the assessment of ECL.

Collateral and other credit enhancements
The main types of collateral or other credit enhancements held by the Group and the Bank to mitigate credit risk are fixed
deposits, financial investments, commercial and residential properties and machineries.