Page 224 - EXIM_AR2021

222 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

44. islamic bUsiness fUnDs (cOnt’D.)

Notes to the financial statements for Islamic business fund and Takaful fund for the financial year ended 31 December 2021
(cont’d.)
(d) Islamic financing (cont’d.)

(ix) Overlays and adjustments for expected credit losses amid COVID-19 environment
As the current MFRS 9 models are not expected to generate levels of expected credit losses (“ECL”) with sufficient
reliability in view of the unprecedented and ongoing COVID-19 pandemic, overlays and post-model adjustments
have been applied to determine a sufficient overall level of ECLs for the year ended and as at 31 December 2021.
The overlays involved significant level of judgement and reflect the management’s views of possible severities of
the pandemic and paths of recovery in the forward looking assessment for ECL estimation purposes.
The adjusted downside scenario assumes a continuous restrictive economic environment due to COVID-19, the impact
of these adjustments were estimated at portfolio level and the Bank for financing as at 31 December 2021 amounted
to RM246,341,000. Total additional overlays for ECL maintained by the Group and the Bank as at 31 December 2021
stood at RM5,638,000 (2020: RM9,784,000).

ECL (inclusive of overlays) analysed by geographical area are as follows:
Group and Bank
Outstanding Modelled Management Total
Amount ECL Overlay ECL
2021 2021 2021 2021
RM’000 RM’000 RM’000 RM’000

Malaysia 95,906 13,334 3,619 16,953
Oceania 960 183 - 183
South Asia 17,439 299 542 841
114,305 13,816 4,161 17,977

Group and Bank
Outstanding Modelled Management Total
Amount ECL Overlay ECL
2020 2020 2020 2020
RM’000 RM’000 RM’000 RM’000

Africa 45,305 916 2,500 3,416
East Asia 28,328 355 479 834
Malaysia 149,174 18,041 6,466 24,507
Oceania 829 181 339 520
South Asia 22,705 7,134 - 7,134
246,341 26,627 9,784 36,411