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36. SIGNIFICANT RELATED PARTIES TRANSACTION AND BALANCES (CONT’D)
(c) Government related parties (cont’d)
Bank Negara Malaysia
2013
2012
RM’000
RM’000
Amount due to:
Borrowings
–
1,000,000
Interest payable
5,041
5,027
Group and Bank
2013
2012
RM’000
RM’000
Transaction during the year:
Interest expense
10,000
10,000
(d) Licensed banks and other financial institutions
Group and Bank
2013
2012
RM’000
RM’000
Deposits and placements
580,274
806,516
37. FINANCIAL RISK MANAGEMENT POLICIES
The Group’s and the Bank’s financial risk management policies seek to enhance shareholder’s value. The Group and the
Bank focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial
performance of the Bank.
The Risk Management Division of the Group is responsible for formulating policies and the oversight of credit, market
liquidity and operational risks.
Financial risk management is carried out through risk assessment and reviews, internal control systems and adherence to
Group’s financial risk management policies, which are reported to and approved by the Board of Directors. The Board also
approves the treasury practices which cover the management of these risks.
The main areas of financial risks faced by the Group and the Bank and the policies are set out as follows:
a. Capital management
Capital Management refers to continuous, proactive and systematic process to ensure the Group and the Bank have
sufficient capital in accordance to its risk profile and regulator’s requirements.
EXIM Bank Annual Report 2013
157