Page 206 - EXIM_AR2021

204 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

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

Fair values (cont’d.)
(i) Fair value hierarchy (cont’d.)
For financial instruments classified as Level 1, the valuations are determined by reference to unadjusted quoted prices
for identical assets or liabilities in active markets where the quoted prices are readily available, and the prices represent
actual and regularly occurring market transactions at arm’s length basis. An active market is one in which transactions
occur with sufficient volume and frequency to provide pricing information on an ongoing basis.

For financial instruments classified as Level 2, their values are based on quoted prices in inactive markets, or whose values
are based on models whereby the inputs to those models are observable either directly or indirectly for substantially the
full term of the asset or liability. These would include certain bonds, corporate debt securities and issued notes.
The following table represents financial assets and liabilities measured at fair value and classified by level with the following
fair value measurement hierarchy:
Carrying Fair value Fair value
Group and Bank value Level 2 Level 3
RM’000 RM’000 RM’000

2021
Financial assets
Assets measured at fair value
Financial investments at FVOCI
- Unquoted debt securities 613,625 613,625 -
Derivative financial instruments 80,463 80,463 -
Total financial assets carried at fair value 694,088 694,088 -

Financial liabilities
Liabilities not measured at fair value

Derivative financial instruments 999 999 -
Financial assets
Assets measured at fair value
Investment properties 814 - 1,140
Investment securities at amortised cost
- Unquoted debt securities 494,014 494,021 -
Loans, advances and financing 3,301,561 - 3,300,964

Financial liabilities
Liabilities not measured at fair value
Borrowings 5,781,695 5,781,695 -