Page 214 - EXIM-Bank_Annual-Report-2023

EXIM BANk MALAySIA
212 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 quality by class of financial assets (cont’d)

Credit quality of loans, advances and financing excluding ECR debtors (cont’d)
For commercial exposures, the Group and the Bank use ten risk grades with rating ‘1’ representing the lowest risk. Meanwhile
for Sovereign exposures, the Group and the Bank use five risk grades with rating ‘aaa’ representing the lowest risk.
The exposure under each of these risk grades is as follows: (cont’d)
Stage 1 Stage 2 Stage 3 Total
rM’000 rM’000 rM’000 rM’000

2022
Commercial customer
Risk Rating 1 - - - -
Risk Rating 2 - - - -
Risk Rating 5 623,833 398,426 - 1,022,259
Risk Rating 6 467,154 362,451 - 829,605
Risk Rating 7 - 158,879 - 158,879
Risk Rating 8 - - - -
Risk Rating 9 - 2,129 - 2,129
Impaired - - 2,024,493 2,024,493
1,438,814 921,885 2,024,493 4,385,192

Sovereign

Risk Rating b+ - 17,354 - 17,354
Risk Rating bb - 1,880 - 1,880
Risk Rating bb+ - 277,076 - 277,076
- 296,310 - 296,310

1,438,814 1,218,195 2,024,493 4,681,502

Restructured items
Restructured loans refer to the financial assets that would otherwise be past due or impaired where there is fundamental
revision in the principal terms and conditions of the facility. Restructuring shall be considered when the customer’s business is
still viable and is expected to remain viable after the restructuring. There were no impaired loans restructured by the Group
and the Bank during the year (2022: RM28,387,995).