Page 185 - EXIM-BANK-AR20

Section 06 Financial Statements
183

42. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.)
Credit risk exposure (cont’d.)

Collateral and credit enhancement (cont’d.)
The Group and the Bank shall consider accepting the collateral based on its marketability, measurability, stability, transferability,
speed in realising the collateral value, enforceability and free from encumbrances. The collateral types and amounts held by the
Group and the Bank are as follows:
2020 2019
RM’000 RM’000

Collateral type

Secured by cash 45,718 121,331
Secured by property 1,652,440 1,710,566
Secured by machinery 862,303 1,180,421

2,560,461 3,012,318

The financial assets that are credit impaired and related collateral held in order to mitigate potential losses are shown below:
Gross Net Fair value
carrying carrying of collateral
amount ECL amount held
RM’000 RM’000 RM’000 RM’000

2020
Credit impaired financial assets
Loans, advances and financing 2,382,477 1,610,717 771,760 1,241,209
Financial investment at FVOCI 100,000 100,000 - -
Total credit impaired financial assets 2,482,477 1,710,717 771,760 1,241,209

2019
Credit impaired financial assets
Loans, advances and financing 2,643,617 1,968,281 675,336 1,630,357
Financial investment at FVOCI 100,000 100,000 - -
Total credit impaired financial assets 2,743,617 2,068,281 675,336 1,630,357

Collateral and other credit enhancements
The main types of collateral or other credit enhancements held by the Group and the Bank to mitigate credit risk are fixed
deposits, securities, commercial and residential properties and machineries.