Page 196 - EXIM-Bank_Annual-Report-2022

194 eXIM BANK MALAYsIA ANNUAL REPORT 2022

Notes to the fiNaNcial statemeNts

44. 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
2021
Credit exposure for on-balance sheet assets:
Cash and bank balances 49,513 - 49,513
Deposits and placements with banks and other financial institutions 3,126,776 - 3,126,776
Financial investments 1,107,639 - 1,107,639
Loans, advances and financing 3,301,561 2,314,113 987,448
Insurance receivables 45 - 45
Net derivative financial instruments 79,464 - 79,464
Other assets excluding tax prepayment 65,864 - 65,864

7,730,862 2,314,113 5,416,749

Credit exposure for off-balance sheet assets:
Banking operations commitments 1,258,855 - 1,258,855
Insurance operations commitments
Short term 319,069 - 319,069
Medium/Long term 277,767 - 277,767
1,855,691 - 1,855,691

9,586,553 2,314,113 7,272,440

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.