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Section 06 Financial Statements
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42. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.)
Regulatory capital

The following table set forth capital resources and capital adequacy for the Bank as at 31 December:
Without With
Transitional Transitional
Arrangement Arrangement
2020 2020 2019
RM’000 RM’000 RM’000
Ordinary share capital 2,708,665 2,708,665 2,708,665
Accumulated losses (1,382,814) (1,382,814) (888,833)
Current year profit/(loss) 51,150 51,150 (479,573)
Add: Transitional arrangement - 228,867 -
Eligible Tier 1 capital 1,377,001 1,605,868 1,340,259

Loss provision and regulatory reserve* 564,782 335,915 346,544
Redeemable convertible cumulative preference shares 250,000 250,000 250,000
Provision for guarantee and claims 41,587 41,587 39,705
Provision for commitment and contingencies 47,747 47,747 37,118
Eligible Tier 2 capital 904,116 675,249 673,367

Investment in subsidiaries (64,129) (64,129) (64,129)
Total capital base 2,216,988 2,216,988 1,949,497

Risk weighted assets 5,667,574 5,667,574 6,674,261

Capital Ratio
- With proposed RCCPS dividend (Note 38)
Core capital ratio 24.01% 28.05% 19.87%
RWCR 38.83% 38.83% 28.99%

- Without proposed RCCPS dividend
Core capital ratio 24.30% 28.33% 20.08%
RWCR 39.12% 39.12% 29.21%

* The loss provision for 2020 is computed based on Para 13.1 (d)(ii) or Capital Adequacy Framework (capital components)
issued by BNM on 2 February 2019. The Tier 2 Capital comprise collective allowance on unimpaired loans, advances and
financing and regulatory reserve.
The Group and the Bank have elected to apply the transitional arrangements in accordance with BNM’s Guidelines on
Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions for Development Financial Institutions.