Page 340 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

55 COMMITMENTS AND CONTINGENCIES
in the normal course of business, the Group’s banking subsidiary makes various commitments and incur certain contingent
liabilities with legal recourse to their customers. no material losses are anticipated as a result of these transactions. these exclude
all contracts cleared in the normal course of the takaful business.
as disclosed in note 56, the company announced that it proposed to undertake various proposal as disclosed in note 57.
the assets and liabilities, including the commitments and contingencies below are classified as held for sale because they are
inteGrated annUal rePort 2020 the off-balance sheet and counterparties credit risk for bank islam is as follows: derivative equivalent weighted
held for distribution to owners of the Group.

positive fair

Risk
Credit
value of

principal
asset
31 December 2020
RM’000
RM’000
RM’000
Nature of item
Credit related exposures amount contracts amount RM’000
direct credit substitutes 449,506 – 449,506 442,426
334
transaction related contingent items 899,541 – 449,770 436,481
Short term self-liquidating trade related contingencies 592,744 – 118,549 117,165
other commitments, such as formal standby facilities 938,247 – 469,124 362,317
bimb holdinGS berhad 199701008362 (423858-X) at any time by the bank without prior notice or that 11,557,018 – 1,486,949 – 1,358,389 –
and credit lines, with an original maturity of:
– exceeding one year
any commitments that are unconditionally cancelled
effectively provide for automatic cancellation due to
deterioration in a borrower’s creditworthiness
8,676,980

–
Derivative Financial Instruments
foreign exchange related contracts
– less than one year
Profit rate related contracts 8,518,422 59,494 143,217 60,587
– one year to less than five years 114,056 2,171 5,414 4,045
8,632,478 61,665 148,631 64,632

Total 20,189,496 61,665 1,635,580 1,423,021