Page 210 - EXIM-Bank_Annual-Report-2022

208 eXIM BANK MALAYsIA ANNUAL REPORT 2022

Notes to the fiNaNcial statemeNts

44. 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
2022
Financial assets
Assets measured at fair value
Financial investments at FVOCI
- Unquoted debt securities 277,270 277,270 -
Financial investments at FVTPL
- quoted shares 9,979 9,979 -
Derivative financial instruments 15,887 15,887 -
Total financial assets carried at fair value 303,136 303,136 -

Financial liabilities
Liabilities measured at fair value
Derivative financial instruments 183,904 183,904 -

Financial assets
Assets not measured at fair value
Investment properties 796 - 1,140
Financial investments at amortised cost
- Unquoted debt securities 377,925 377,925 -
Loans, advances and financing 3,017,644 - 2,997,658

Financial liabilities
Liabilities not measured at fair
Borrowings 4,522,842 - 4,522,842