2. CAPITAL ADEQUACY (CONTINUED) 2.1 Capital Management (continued) As such, the four fundamental components of a sound capital planning process include: • Internal control and governance; • Capital policy and risk capture; • Forward-looking view; and • Management framework for preserving capital. The Group’s Capital Management Plan is updated annually and approved by the Board for implementation at the beginning of each financial year. The capital plan is drawn up to cover at least a three-year horizon and takes into account, amongst others, the Group’s strategic objectives and business plans, regulatory capital requirements, capital benchmarking against the industry, available supply of capital and capital raising options, performance of business sectors based on a Risk Adjusted Return on Capital (RAROC) approach, as well as ICAAP and stress testing results. On 6 September 2018, the Group lodged with SC under Lodge and Launch Framework, a Sukuk Murabahah Programme of up to RM10.0 billion in nominal value, which allows issuances of Subordinated Sukuk Murabahah and Senior Sukuk Murabahah. The purpose of the Subordinated Sukuk Murabahah issuance under the programme is to enhance the capital adequacy of the Group, in line with the requirements under the Basel III capital framework. The programme is qualified as Tier 2 regulatory capital of the Bank and the Group in accordance with BNM’s CAFIB (Capital Components) Guideline. Additionally, on 27 June 2022, the Group successfully lodged with SC under Lodge and Launch Framework, a Sukuk Wakalah Programme of up to RM5.0 billion in nominal value, for the issuances of Additional Tier 1 (AT1) Capital Sukuk Wakalah. In 2024, the Group had on 22 August 2024 issued RM250 million AT1 under the RM5.0 billion Capital Sukuk Wakalah Programme. This shall qualify as Tier 1 regulatory capital of the Bank and the Group in accordance with BNM’s CAFIB (Capital Components) Guideline. Table below depicts a summary of the Subordinated Sukuk Murabahah and Sukuk Wakalah Programme of the Group: 431 w w w . b a n k i s l a m. c o m 01 02 03 04 05 06 07 08 FINANCIAL STATEMENTS 09
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