Page 194 - EXIM_AR2021

192 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

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

Credit risk exposure (cont’d.)
Maximum exposure to credit risk without taking into account of any collateral and other credit enhancements: (cont’d.)
Maximum
exposure to Collateral Net
Group and Bank credit risk value exposures
RM’000 RM’000 RM’000

2020

Credit exposure for on-balance sheet assets:
Cash and bank balances 122,399 - 122,399
Deposits and placements with banks and other financial institutions 3,364,099 - 3,364,099
Financial investments 1,165,551 - 1,165,551
Loans, advances and financing 3,679,083 2,560,461 1,118,622
Insurance receivables 746 - 746
Net derivative financial instruments 141,749 - 141,749
Other assets excluding tax prepayment 80,718 - 80,718
8,554,345 2,560,461 5,993,884

Credit exposure for off-balance sheet assets:
Banking operations commitments 2,275,832 - 2,275,832
Insurance operations commitments
Short term 454,725 - 454,725
Medium/Long term 366,635 - 366,635

3,097,192 - 3,097,192

11,651,537 2,560,461 9,091,076

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.