Page 293 - 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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49 FINANCIAL RISk MANAGEMENT POLICIES (CONTINUED)
49.3 Credit risk (continued)
Banking (continued) achieving a leading repute
(iii) Credit quality of financing, advances and others (continued)

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no significant changes to estimation techniques or assumptions were made during the year.
the bank internal credit risk rating are defined as follows:
• Excellent to Good: Sound financial position with no difficulty in meeting its obligations. Paving the Way for a Sustainable future
• Satisfactory: adequate safety of meeting its current obligations but more time is required to meet the entire
obligation in full.

• Fair: higher risks on payment obligations. financial performance may continue to deteriorate.
financing, advances and others of the main subsidiary, bank islam, are classified as follows:
• Neither past due nor impaired financing
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financing for which the borrower has not missed a contractual payment (profit or principal) when contractually
due and is not impaired and there is no objective evidence of impairment.
• Past due but not impaired financing
adhering to the best Governance Practices
financing for which its contractual profit or principal payments are past due, but the bank believes that
impairment is not appropriate on the basis of the level of collateral available and/or the stage of collection
amounts owed to the bank.

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Laying the Foundation for Financial Growth

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additional information & disclosure Summary

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24 th aGm information