Page 134 - EXIM_AR2021

132 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

6. financial investments (cOnt’D.)

Movements in the expected credit losses on financial investments at amortised cost are as follows:
Stage 1 Stage 2 Stage 3
Lifetime ECL Lifetime
12- months not credit ECL credit
ECL impaired impaired Total ECL
RM’000 RM’000 RM’000 RM’000

At 1 January 2020 3 71,239 - 71,242
Allowance during the year 1 42,665 - 42,666
At 31 December 2020/1 January 2021 4 113,904 - 113,908
Allowance during the year 3 4,197 - 4,200
At 31 December 2021 7 118,101 - 118,108

As the current MFRS 9 models are not expected to generate levels of ECL with sufficient reliability in view of the unprecedented
and on-going COVID-19 pandemic, overlays and postmodel adjustments have been applied to determine a sufficient overall
level of ECLs for the financial year ended and as at 31 December 2021. The total management overlay on Stage 2 ECL stood at
RM49,192,125 (2020: RM54,259,225) was provided for a non-rated financial investment.

7. lOans, aDvances anD financing

Group and Bank
2021 2020
RM’000 RM’000

At amortised cost
Loans, advances and financing 5,261,790 5,695,247
Loans under MKFF scheme 7,077 8,976
Amount due from Export Credit Refinancing (“ECR”)* debtors 31,167 34,589
Staff loans 597 752
Gross loans, advances and financing 5,300,631 5,739,564
Less: Allowance for impaired loans, advances and financing:
- 12 month ECL - Stage 1 (66,630) (31,569)
- Lifetime not credit impaired ECL - Stage 2 (482,275) (418,195)
- Lifetime ECL credit impaired - Stage 3 (1,450,165) (1,610,717)
Net loans, advances and financing 3,301,561 3,679,083

* The amount represents block discounting of bills facility provided to participating banks in Malaysia granted under ECR
Scheme. The primary objective of the Scheme is for the promotion of Malaysian export by offering competitive rates to banks
participating in the ECR Scheme for on-lending to exporters.