BIMB Integrated Annual Report 2019

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. The off-balance sheet and counterparties credit risk for Bank Islam is as follows: Positive fair Value of Credit Risk 31 December 2019 Principal derivative equivalent weighted amount contracts amount asset Nature of item RM’000 RM’000 RM’000 RM’000 Credit related exposures Direct credit substitutes 416,059 – 416,059 413,653 Transaction related contingent items 930,689 – 465,344 442,978 Short term self-liquidating trade related contingencies 603,739 – 120,748 120,588 Other commitments, such as formal standby facilities and credit lines, with an original maturity of: – exceeding one year 1,168,133 – 584,067 433,070 Any commitments that are unconditionally cancelled at any time by the bank without prior notice or that effectively provide for automatic cancellation due to deterioration in a borrower’s creditworthiness 7,892,943 – – – 11,011,563 – 1,586,218 1,410,289 Derivative Financial Instruments Foreign exchange related contracts – less than one year 6,255,520 31,626 72,532 38,011 Profit rate related contracts – less than one year – – – – – one year to less than five years 147,098 1,700 7,240 4,886 6,402,618 33,326 79,772 42,897 Total 17,414,181 33,326 1,665,990 1,453,186 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 319 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary