Page 236 - EXIM-Bank_Annual-Report-2023

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

45. ISLAMIC BuSINESS FuNDS (cont’d)
Notes to the financial statements for Islamic business fund and Takaful fund for the financial year ended 31 December 2023
(cont’d)
(f) Islamic financing (cont’d)
(ix) Overlays and adjustments for ECL amid COVID-19 environment and current emerging risks

As the current MFRS 9 models are not expected to generate levels of expected credit losses (“ECL”) with sufficient
reliability in view of the current ermerging risks. The overlays and post-model adjustments have been applied to
determine a sufficient overall level of ECLs for the year ended and as at 31 December 2023.
The overlays involved significant level of judgement and reflect the management’s views of possible severities of the
pandemic and paths of recovery in the forward looking assessment for ECL estimation purposes.

The impact of the management overlays has been improved based on the latest performance by customers
from geopolitical tension, elevated inflation and increase in interest ratesThe impact of these adjustments were
estimated at portfolio level and the Bank for financing as at 31 December 2023 amounted to RM247,120,000
(2022: RM264,195,000). Total additional overlays for ECL maintained by the Group and the Bank as at 31 December
2023 stood at RM5,000 (2022: RM10,207,000).

ECL (inclusive of overlays) analysed by geographical area are as follows:
Group and Bank
Outstanding Modelled Management Total
Amount ECL Overlay ECL
2023 2023 2023 2023
rM’000 rM’000 rM’000 rM’000
Europe 205,975 6,995 (1) 6,994
Malaysia 41,145 5,077 (4) 5,073
247,120 12,072 (5) 12,067

Group and Bank
Outstanding Modelled Management Total
Amount ECL Overlay ECL
2022 2022 2022 2022
rM’000 rM’000 rM’000 rM’000

Europe 215,470 1,875 5,628 7,503
Malaysia 48,725 5,962 4,579 10,541
264,195 7,837 10,207 18,044