Page 132 - EXIM_AR2021

130 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

3. significant accOUnting estimates anD jUDgement (cOnt’D)

3.3 Basis for expected credit losses (“ECL”) management overlays due to COVID-19
With the recent and rapid development of the coronavirus outbreak in Malaysia, the Government of Malaysia had initially
declared a Movement Control Order (“MCO”) in 2020. This was then extended through the Conditional MCO and Recovery
MCO throughout 2021.
The MCO involved limitation and/or suspension of business operations, travel restrictions, and quarantine measures.
Similar measures have also been introduced in various countries, some of which the Group and the Bank have exposure
in. Whilst these measures may not have an immediate and pronounced impact on the banking industry, it is expected
to have some effect, impacting, for example, the Group’s and the Bank’s allowance for ECL on loans, advances and
financing, liabilities in respect of certain insurance/Takaful products and the valuation of financial investments.
As the outbreak continues to progress and evolve, it is challenging at this juncture, to predict the full extent and duration
of its business and economic impact. The Group and the Bank will continue to monitor the progress of the outbreak
and measure and report the impact, if any, of the outbreak on their financial statements as they occur subsequent to
the reporting date. As the current MFRS 9 models may not fully reflect the ECL impact arising from the unprecedented
ongoing COVID-19 pandemic, management overlays have been applied to determine a sufficient overall level of
ECL for the financial year ended 31 December 2021. The management overlay on ECL for financial investment and loans,
advances and financing for the Group and the Bank as at 31 December 2021 stood at RM49,192,125 (2020: RM54,259,225)
and RM RM181,692,000 (2020: RM150,431,032) respectively.

4. cash anD bank balances

Group and Bank
2021 2020
RM’000 RM’000
Cash and bank balances 49,513 122,399

5. DePOsits anD Placements with banks anD Other financial institUtiOns

Group and Bank
2021 2020
RM’000 RM’000

Deposits and placements with:
Licensed banks 2,201,936 2,343,070
Other financial institutions 924,840 1,021,029
3,126,776 3,364,099

Further breakdown to deposits and placements are as follows:
For EXIM Bank 3,026,829 3,233,730
On behalf of customers and government ** 99,947 130,369
3,126,776 3,364,099

** Included in deposits and placements with licensed banks and other financial institutions are placements of the unutilised
fund from the Government of Malaysia under the MKFF Scheme. In 2021, the fund under MKFF Scheme been fully settled
(2020: RM27,387,487).