Page 188 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1 Basis of preparation (continued)
(a) Statement of compliance (continued)
(iv) Bank Negara Malaysia (“BNM”) allows financial institutions to drawdown certain prudential
buffers as below:
inteGrated annUal rePort 2020 • Operate below the minimum Liquidity Coverage Ratio (“LCR”) of 100%;
• Drawdown the capital conservation buffer of 2.5%;

• Reduce the regulatory reserves held against expected credit losses to 0%; and

• Minimum Net Stable Funding Ratio (“NSFR”) is lowered to 80% from 100% effective 1 July 2020.
bnm requires financial institutions to restore the minimum regulatory requirements by 30 September 2021.
other than as described above, the adoption of other accounting standards, interpretations and amendments
did not have any significant impact on the Group and the company.
182 (v) Amendments to MFRS that were adopted by the Group and the Company
during the financial year, the Group and the company adopted the following amendments to the standards
which came into effect 1 January 2020:
bimb holdinGS berhad 199701008362 (423858-X) • Amendments to MFRS 9, Financial Instruments, mfrS 139, Financial Instruments: Recognition and
• The Conceptual Framework for Financial Reporting (Revised 2018)
• Amendments to MFRS 3, Business Combinations - Definition of a Business

Measurement and mfrS7 – Interest Rate Benchmark Reform
• Amendments to MFRS 16, COVID-19-Related Rent Concessions (effective 1 June 2020)
• Amendments to MFRS 101, Presentation of Financial Statements and mfrS 108 Accounting Policies,
Changes in Accounting Estimates and Errors – Definition of Material

the adoption of these amendments to published standards did not have any impact on the financial results
of the Group and the company.