Page 187 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1 Basis of preparation (continued)
(a) Statement of compliance achieving a leading repute
the financial statements of the Group and of the company have been prepared in accordance with the applicable
malaysian financial reporting Standards (“mfrS”), international financial reporting Standards (“ifrS”), |
the requirements of companies act 2016 in malaysia and Shariah requirements.

this is the first set of the Group’s and of the company’s annual financial statements in which the impact of
covid-19 (“pandemic”) was considered. the Government has introduced certain measures to assist customers
experiencing temporary financial constraints due to the pandemic. the key measures affecting regulatory and Paving the Way for a Sustainable future
accounting treatment and classifications are as follows:
(i) Moratorium repayment on financing:
• Bank Islam Malaysia Berhad (“Bank Islam” or “the Bank”) has granted an automatic repayment
moratorium on all individuals’ and small-medium enterprises’ (“Smes”) financing (except for credit card
balances) for a period of six months from 1 april 2020. the automatic moratorium applied to financing
not in arrears exceeding 90 days as at 1 april 2020 and denominated in malaysian ringgit. this measure 181
is extended beyond 1 october 2020 to viable customers on a case-to-case basis.

• For credit card balances, Bank Islam offered the option to convert the balances to term financing.
• For corporate customers, Bank Islam granted assistance through repayment moratorium or additional
working capital or rescheduling and restructuring of existing facilities. this is to enable viable corporations
in preserving jobs and resuming economic activities when conditions stabilise and improve.
(ii) Definition of defaulted exposures under the policy documents on Capital Adequacy Framework adhering to the best Governance Practices
for Islamic Banks for which assistance is granted:
• The determination of “days past due” is based on the new repayment terms of rescheduled and
restructured financing.
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• Individuals or SMEs are not considered to be in default based on the “unlikeliness to repay” at the time
of when the assistance was granted, except for when customers are subject to bankruptcy action.
• Corporates “unlikeliness to repay” are based on holistic assessment of all relevant factors and information,
not on the act of accepting assistance from the bank. Laying the Foundation for Financial Growth
the regulatory capital treatment above shall apply to financing denominated in malaysian ringgit that meet
the following criteria:

• The principal or profit or both, is not in arrears exceeding 90 days at the application date of assistance.
• The application is received on or before 30 June 2021. |
(iii) Classification in the Central Credit Reference Information System (“CCRIS”)
the following shall apply for rescheduled and restructured financing with arrears not exceeding 90 days at
the application date of assistance received on or before 30 June 2021: additional information & disclosure Summary
• The financing need not be reported as (R&R) in CCRIS; and
• The financing need not be reported as credit-impaired in CCRIS.
however, financing with multiple r&r (more than one r&r are made from 1 april 2020 until 30 June 2021)
is excluded from the above treatment as it is deemed as non-viable financing. |
24 th aGm information