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EXIM BANk MALAySIA
200 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)
Credit risk management (cont’d)
Impairment of financial assets
The Group and the Bank individually assesses its financial assets for any objective evidence of impairment as a result of one
or more loss events that occurred after the initial recognition. In determining that there is objective evidence of an impaired
loss, the Group and the Bank adopted a systematic mechanism for a prompt trigger of impairment test whereby the triggers
are based on obligatory and judgmental event triggers.
When there is objective evidence of impairment of the financial assets, the classification of these assets as impaired shall be
endorsed and approved by Management Committee (“MC”). Impairment losses are recorded as charges to the statement of
profit or loss. The carrying amount of impaired loans, advances and financing on the statement of financial position is reduced
through the use of impairment allowance account. Losses expected from future events are not recognised.
Credit risk exposure
Maximum exposure to credit risk without taking into account of any collateral and other credit enhancements:
Maximum
exposure to Collateral Net
credit risk value exposures
rM’000 rM’000 rM’000
Group and Bank
2023
Credit exposure for on-balance sheet assets:
Cash and bank balances 15,744 - 15,744
Deposits and placements with banks and other financial institutions 1,972,976 - 1,972,976
Financial investments 741,367 - 741,367
Loans, advances and financing 3,160,467 2,624,091 536,376
Reinsurance contract assets 9,872 - 9,872
Derivative financial instruments 63 - 63
Other assets excluding tax prepayment 50,335 - 50,335
5,950,824 2,624,091 3,326,733
Credit exposure for off-balance sheet assets:
Banking operations commitments 1,167,424 - 1,167,424
Insurance operations commitments
Short term 300,849 - 300,849
Medium/Long term 348,312 - 348,312
1,816,585 - 1,816,585
7,767,409 2,624,091 5,143,318
