Page 180 - EXIM-Bank_Annual-Report-2023

EXIM BANk MALAySIA
178 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
Notes to the fiNaNcial statemeNts

41. SIGNIFICANT rELATED PArTIES TrANSACTIoN AND BALANCES
For the purposes of these financial statements, parties are considered to be related to the Group and the Bank, if the Group
or the Bank has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making
financial and operating decisions, or vice versa, or where the Group or the Bank and the party are subject to common control
or common significant influence. Related parties may be individuals or other entities.

The Group has related party transactions and balances with the following parties:
(a) Compensation of key management personnel

Key management personnel is defined as those persons having authority and responsibility for planning, directing
and controlling the activities of the Group either directly or indirectly. The key management personnel consists of the
President/Chief Executive Officer and senior management of the Group and the Bank. The key management personnel
compensation is disclosed in Note 32.
(b) The significant outstanding balances of the Bank with the related companies are as follows:
Bank
2023 2022
rM’000 rM’000
Amount due to subsidiaries 64,108 64,111

42. CrEDIT EXPoSurE ArISING FroM FINANCING FACILITIES WITh CoNNECTED PArTIES

The Group’s and the Bank’s credit exposure arising from financing facilities with connected parties are as disclosed below:
Group and Bank
2023 2022
rM’000 rM’000

Aggregate value of outstanding exposure with connected parties 738,617 688,192
Off-balance sheet exposure 45,900 -
Equities and Private Debt Securities (“PDS”) held 70,000 230,000

854,517 918,192

Total exposure to connected parties as % of total capital 46.37% 39.30%

Total exposure to connected parties as % of total outstanding exposures 9.67% 11.65%

The credit exposures disclosed below are based on the requirement of Paragraph 14.1 of Bank Negara Malaysia’s Policy
Document on Financing Facilities with Connected Parties (“Policy Document”).