Page 197 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCING FINANCIAL
TO SERVE TO LEAD GROWTH SUSTAINABILITY GOVERNANCE STATEMENTS 195

Notes to the fiNaNcial statemeNts

44. FINaNCIaL RISk MaNaGEMENT POLICIES (cont’d.)
Credit risk exposure (cont’d.)

Collateral and credit enhancement (cont’d.)
The Group and the Bank shall consider accepting the collateral based on its marketability, measurability, stability, transferability,
speed in realising the collateral value, enforceability and free from encumbrances. The collateral types and amounts held by
the Group and the Bank are as follows:
2022 2021
rM’000 rM’000
Collateral type
Secured by cash 79,262 36,019
Secured by property 1,339,499 1,499,450
Secured by machinery 1,412,531 778,644
2,831,292 2,314,113

The financial assets that are credit impaired and related collateral held in order to mitigate potential losses are shown below:

Gross Net Fair value
carrying carrying of collateral
amount eCL amount held
rM’000 rM’000 rM’000 rM’000
2022
Credit impaired financial assets
Loans, advances and financing 2,024,493 1,466,033 558,460 1,312,533
Financial investment at FVOCI 100,000 100,000 - -
Total credit impaired financial assets 2,124,493 1,566,033 558,460 1,312,533

2021
Credit impaired financial assets
Loans, advances and financing 2,096,575 1,450,165 646,410 1,597,077
Financial investment at FVOCI 100,000 100,000 - -
Total credit impaired financial assets 2,196,575 1,550,165 646,410 1,597,077

Collateral and other credit enhancements

The main types of collateral or other credit enhancements held by the Group and the Bank to mitigate credit risk are fixed
deposits, financial investments, commercial and residential properties and machineries.