Page 87 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCINg FINANCIAL
84 EXIM BANK MALAYSIA ANNUAL REPORT 2022 TO SERVE TO LEAD GROWTH SUSTAINABILITY gOVERNANCE STATEMENTS 85

5. Review of the Bank’s portfolio management and exposures

During the year, the Bank also conducted a review of its credit portfolio limits specifically on investment, country and
sector. These limits, along with their respective risk appetite metrics are monitored and reported on monthly basis in the
credit risk reporting to the Board of Directors.
Credit Risk Department had completed the review of Procedures on Country Risk Management and obtained approval at
the Management Audit, Risk & Compliance Committee Meeting.
Further, the Market Risk Department has completed the review of Procedures on Validation of Internal Rating System and
MFRS9 Models and obtained approval as per the above meeting.
6. Review of Policy on Product Management

The Bank’s internal Policy on Product Management (the Policy) was established to address the requirements of BNM’s Policy
on Introduction of New Product.

The Policy sets out the internal requirements for Islamic and conventional product management developed within the scope
of EXIM Bank’s mandated roles. These include providing credit facilities to finance and support exports and imports of
goods, services, and overseas projects with emphasis on non-traditional markets, in addition to providing export credit
insurance services, export financing insurance, overseas investments insurance and guarantee facilities.
This Policy specified the Bank’s overall product management, requirements and governance including the responsible parties,
the management and control of risk associated with the development, offering and marketing of new product as well as
product variation.

The Policy review was endorsed at the Shariah Committee Meeting and approved at the Board of Directors Meeting.
7. Stress Test Methodologies, Analysis and Documentations

The Bank conducted comprehensive stress test covering all the material risks i.e credit risk, market risk, interest rate risk,
operational risk and Shariah non- compliance (SNC) risk periodically as required by the BNM.

The stress test conducted covered a broad range of scenarios capturing foreseeable changes in the Bank’s portfolio
composition, new information, developments in operating conditions and emerging risks which may not necessarily be covered
by historical events.
The review of Procedures on Stress Testing (the Procedures) was approved at the Management Audit, Risk and Compliance
Committee (MARCC) meeting.
The Procedures is the primary document that serve as guidance for the Bank’s management of stress testing and assessment
towards the Bank’s potential vulnerabilities to stressed business conditions and potential adverse changes to a variety of
risk factors identified.