BIMB Integrated Annual Report 2019

48 FINANCIAL RISK MANAGEMENT POLICIES (CONTINUED) 48.3 Credit risk (continued) Maximum exposure to credit risk (continued) Banking (continued) (c) Financial guarantee contracts (“FGC”) FGCs comprise mainly of guarantees to customers, and to controlled entities of the Bank under the deed of cross guarantee, standby or documentary letters of credit and performance related contingencies. The Bank will typically have recourse to specific assets pledged as collateral in the event of a default by a party for which the Bank has guaranteed its obligations to a third party. (d) Financing commitments Financing commitments mainly comprise of irrevocable financing commitments to finance a customer provided there is no breach of any condition established in the contract. If such financing commitments are drawn down by the customer there will typically be specific collateral requirements that will need to be satisfied by the customer in order to access to credit facilities. (i) Concentration of credit risk for Bank Cash and short-term funds and deposits and On- placements Financial Derivative Financial Financing, balance Financial with financial assets at financial assets at advances sheet guarantee Financing Bank Islam institutions FVTPL assets FVOCI and others total contracts commitments* As a 31 December 2019 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Primary agriculture – – – 20,282 1,235,411 1,255,693 8,865 250,022 Mining and quarrying – – – – 420 420 10,145 44,278 Manufacturing (including agro-based) – – 30 62,973 819,640 882,643 136,235 449,484 Electricity, gas and water – – – 1,883,960 1,818,272 3,702,232 67,660 156,012 Wholesale & retail trade, and hotels & restaurants – – 18,926 – 881,485 900,411 127,255 280,678 Construction – – – 750,796 2,153,269 2,904,065 393,338 1,203,928 Transport, storage and communications – – 3 1,604,845 885,686 2,490,534 99,787 174,259 Finance, insurance, real estate and business activities 2,650,786 423,938 9,901 5,410,186 3,669,708 12,164,519 142,801 846,776 Education, health and others – – 47 683,042 1,112,776 1,795,865 560,120 982,567 Household sectors – – – – 36,895,855 36,895,855 – 796,966 Other sectors 821,600 – 4,419 1,683,597 – 2,509,616 404,281 3,876,106 3,472,386 423,938 33,326 12,099,681 49,472,522 65,501,853 1,950,487 9,061,076 * Financing commitments excluding derivative financial assets NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 275 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary