Page 178 - EXIM_AR2021

176 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

42. financial risk management POlicies (cOnt’D.)

Regulatory capital
The following table set forth capital resources and capital adequacy for the Bank as at 31 December:
Without With Without With
Transitional Transitional Transitional Transitional
Arrangement Arrangement Arrangement Arrangement
2021 2021 2020 2020
RM’000 RM’000 RM’000 RM’000

Ordinary share capital 2,708,665 2,708,665 2,708,665 2,708,665
Accumulated losses (1,348,029) (1,348,029) (1,382,814) (1,382,814)
Current year profit 51,107 51,107 51,150 51,150
Add: Transitional arrangement - 91,204 - 228,867

Eligible Tier 1 capital 1,411,743 1,502,947 1,377,001 1,605,868

Loss provision and regulatory reserve* 667,068 575,864 564,782 335,915
Redeemable convertible cumulative preference shares 250,000 250,000 250,000 250,000
Provision for guarantee and claims 35,106 35,106 41,587 41,587
Provision for commitment and contingencies 36,665 36,665 47,747 47,747
Eligible Tier 2 capital 988,839 897,635 904,116 675,249

Investment in subsidiaries (64,129) (64,129) (64,129) (64,129)
Total capital base 2,336,453 2,336,453 2,216,988 2,216,988

Risk weighted assets 5,271,754 5,271,754 5,667,674 5,667,674

Capital Ratio

- With proposed RCCPS dividend (Note 38)
Core capital ratio 26.47% 28.20% 24.01% 28.05%
RWCR 44.01% 44.01% 38.83% 38.83%

- Without proposed RCCPS dividend
Core capital ratio 26.78% 28.51% 24.30% 28.33%
RWCR 44.32% 44.32% 39.12% 39.12%

* The loss provision for 2021 is computed based on Para 13.1 (d)(ii) or Capital Adequacy Framework (capital components)
issued by BNM on 2 February 2019. The Tier 2 Capital comprise collective allowance on unimpaired loans, advances and
financing and regulatory reserve.
The Group and the Bank have elected to apply the transitional arrangements in accordance with BNM’s Guidelines on
Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions for Development Financial Institutions.