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37. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
Credit risk exposure (cont’d)
Collateral and credit enhancement
Collateral represents the asset pledged by a customer and/or a third party on behalf of the customer, in whole or in part, to
secure a credit exposure and/or potential credit exposure with the Group and the Bank, and subject to seizure in the event
of default. Collateral provides the Group and the Bank with a secondary source of repayment, i.e. a source of fund to help
recover its investment should the customer is unable to repay the facility obtained from the Group and the Bank.
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:
2013
2012
RM’000
RM’000
Collateral type
Secured by cash
218,763
65,476
Secured by property
5,014,672
2,580,568
5,233,435
2,646,044
NOTESTOTHEFINANCIALSTATEMENTS
31 DECEMBER 2013
172
EXIM Bank Annual Report 2013