Page 143 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCING FINANCIAL
TO SERVE TO LEAD GROWTH SUSTAINABILITY GOVERNANCE STATEMENTS 141

Notes to the fiNaNcial statemeNts

9. LoANs, ADvANCes AND FINANCING (cont’d.)
(x) Overlays and adjustments for ECL amid COVID-19 environment

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 post-model adjustments have been applied to determine
a sufficient overall level of ECLs for the year ended and as at 31 December 2022.

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 and the impact
of these adjustments on the affected loans, advances and financing of the Group and the Bank as at 31 December 2022
amounted to RM783,183,000 (2021: RM1,039,005,000). Total additional overlays for ECL maintained by the Group and
the Bank as at 31 December 2022 stood at RM66,373,000 (2021: RM180,214,000).
ECL (inclusive of overlays) analysed by geographical area are as follows:

Group and Bank
Management
outstanding Modelled overlay total
Balance eCL Provided eCL
rM’000 rM’000 rM’000 rM’000
2022
Malaysia 412,892 43,485 60,745 104,230
Europe 370,291 25,723 5,628 31,351
783,183 69,208 66,373 135,581

2021
Malaysia 843,518 112,594 154,880 267,474
East Asia 17,439 300 542 842
Europe 177,088 36,367 24,792 61,159
Oceania 960 182 - 182
1,039,005 149,443 180,214 329,657