Page 286 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

49 FINANCIAL RISk MANAGEMENT POLICIES (CONTINUED)
49.3 Credit risk (continued)
Maximum exposure to credit risk (continued)
Banking
(a) Derivative financial assets
inteGrated annUal rePort 2020 (b) master agreements that provide for closeout netting with counterparties, whenever possible. a master agreement
in mitigating the counterparty credit risks from foreign exchange and derivatives transactions, the bank enter into

that governs all transactions between two parties, creates the greater legal certainty that the netting of outstanding
obligations can be enforced upon termination of outstanding transactions if an event of default occurs.

Financing, advances and others

financing, advances and others will may have levels of collateralisation depending on the nature of the product.
Business and retail
the general creditworthiness of a corporate and commercial customer tends to be the most relevant indicator of
280 credit quality of a financing extended to it.
the bank manages its exposures to these customers by completing a credit evaluation to assess the customer’s
character, industry, business model and capacity to meet their commitments in a timely manner. the bank may take
bimb holdinGS berhad 199701008362 (423858-X) the bank routinely updates the valuation of collateral held against all financing as it adopts an annual internal
collateral in the form of a first charge over real estate, floating charges over all corporate assets and other liens and
guarantees.

valuation policy and a 2 years external valuation policy.

at 31 december 2020, the gross exposure of credit-impaired financing and advances to corporate and commercial
customers amounted to rm182,271,000 (2019: rm198,655,000) and the forced sales value of collateral held
against those financing and advances amounted to rm298,895,000 (2019: rm310,524,000).

House financing
the following table presents credit exposures from financing and advances that are credit impaired by ranges of

financing-to-value (“ftv”) ratio. ftv is calculated as the ratio of the gross amount of the financing, or the amount
committed for financing commitments - to the value of the collateral.