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NOTESTOTHEFINANCIALSTATEMENTS
31 DECEMBER 2013
37. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
Liquidity risk management (cont’d)
Measurement (cont’d)
On
Less than
3 to 12
1 to 5
Over 5
demand
3 months
months
years
years
Total
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
2012
Non-derivative financial liabilities
Borrowings
–
318,184
755,650
2,113,332
1,432,394
4,619,561
Other liabilities
245,884
–
–
–
–
245,884
Total financial liabilities
245,884
318,184
755,650
2,113,332
1,432,394
4,865,445
Commitment and contingencies
Banking operation commitments
Contracted but not provided for:
Guarantee facility
160,179
–
–
–
–
160,179
Letter of credit
1,123
–
–
–
–
1,123
Undrawn loans and financing
–
269,967
1,381,840
429,343
–
2,081,150
161,302
269,967
1,381,840
429,343
–
2,242,452
Insurance operation commitments
Contracted but not provided for:
Within one year
–
–
1,422,414
–
–
1,422,414
One year or later and
no later than five years
–
149,142
–
–
–
149,142
–
149,142
1,422,414
–
–
1,571,556
Total commitment and contigencies
161,302
419,109
2,804,254
429,343
–
3,814,008
Credit risk management
Approach and risk strategy
The Group and the Bank recognise that credit risk is inherent in its banking and insurance activities. The main objective of
the Group’s and the Bank’s credit risk management is to ensure that exposure to credit risk is always kept within its capability
and financial capacity to withstand potential future losses.
The Group’s and the Bank’s strategies in credit risk management are:
• Consistent credit approving standards are applied in each of its credit decision processes;
• All credit decisions are within credit risk tolerance that the Group and the Bank are willing to take in meeting its
mandated role;
• All credit risk inherent in business activities of the Group and the Bank are comprehensively identified, measured
and managed;
• Ensure the Group and the Bank hold adequate capital against credit risk and adequately compensated for risks assumed;
168
EXIM Bank Annual Report 2013