Page 194 - EXIM-Bank_Annual-Report-2023

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

43. FINANCIAL rISk MANAGEMENT PoLICIES (cont’d)
Liquidity risk management (cont’d)

Risk identification
There are two types of liquidity risk i.e. funding liquidity risk and market liquidity risk. Funding liquidity risk refers to the
potential inability of the Group and the Bank to meet its funding requirements arising from cash flow mismatches at a
reasonable cost. Market liquidity risk refers to the Group’s and the Bank’s potential inability to liquidate positions quickly and
in sufficient volumes, at a reasonable price.

Measurement
Liquidity is measured by the Group’s and the Bank’s ability to efficiently and economically accommodate decrease in
deposits/funding (such as funds obtained from the Government) and other purchased liabilities and to fund increases in assets
to ensure continued growth of the Group and the Bank.
The Group and the Bank maintain large capital base, sufficient liquid assets, diversified funding sources, and regularly assesses
the long-standing relationship with traditional fund providers. These processes are subject to regular reviews to ensure
adequacy and appropriateness.
In addition, the Group’s and the Bank’s liquidity positions are monitored and managed through structural liquidity indicators,
such as loan to purchase funds and offshore revolving funds utilisation rate ratios to maintain an optimal funding mix and asset
composition.
Table below analyses assets and liabilities of the Group’s and the Bank’s according to their contractual maturity:

on Less than 3 to 12 1 to 5 over 5
demand 3 months months years years Total
rM’000 rM’000 rM’000 rM’000 rM’000 rM’000
Group

2023
Assets
Cash and bank balances 15,744 - - - - 15,744
Deposits and placements
with banks and other
financial institutions - 1,954,616 18,360 - - 1,972,976
Financial investments
at fair value through
profit or loss - - - - 6,377 6,377
Financial investments
at fair value through other
comprehensive income - - 71,107 240,813 189,275 501,195
Financial investments
at amortised cost - - - 182,691 51,104 233,795
Loans, advances and financing - 34,519 58,618 1,562,189 1,505,141 3,160,467
Reinsurance contract assets - 9,872 - - - 9,872
Derivative financial instruments - 63 - - - 63
Other assets 125,884 - - - - 125,884
Total assets 141,628 1,999,070 148,085 1,985,693 1,751,897 6,026,373