Page 229 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCING FINANCIAL
TO SERVE TO LEAD GROWTH SUSTAINABILITY GOVERNANCE STATEMENTS 227

Notes to the fiNaNcial statemeNts

46. ISLaMIC BUSINESS FUNDS (cont’d.)
Notes to the financial statements for Islamic business fund and Takaful fund for the financial year ended 31 December
2022 (cont’d.)
(f) Islamic financing (cont’d.)
(ix) Overlays and adjustments for ECL 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 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,
the impact of these adjustments were estimated at portfolio level and the Bank for financing as at 31 December
2022 amounted to RM264,195,000 (2021: RM114,305,000). Total additional overlays for ECL maintained by the
Group and the Bank as at 31 December 2022 stood at RM10,207,000 (2021: RM4,161,000).
ECL (inclusive of overlays) analysed by geographical area are as follows:

Group and Bank
outstanding Modelled Management total
Amount eCL overlay eCL
2022 2022 2022 2022
rM’000 rM’000 rM’000 rM’000
Europe 215,470 1,875 5,628 7,503
Malaysia 48,725 5,962 4,579 10,541
264,195 7,837 10,207 18,044

Group and Bank
Modelled Management total
Amount eCL overlay eCL
2021 2021 2021 2021
rM’000 rM’000 rM’000 rM’000
East Asia 17,439 299 542 841
Malaysia 95,906 13,335 3,619 16,954
Oceania 960 182 - 182
114,305 13,816 4,161 17,977