Page 280 - Bank-Muamalat-AR2020

278 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
ANNUAL REPORT FY2020

Notes to the fiNaNcial statemeNts
31 December 2020 (16 JamaDil awal 1442h)

44. CrEDIT ExPOSurES ArISING FrOM CrEDIT TrANSACTIONS wITh CONNECTED PArTIES
Group
31 December 31 December
2020 2019
rM’000 rM’000

Outstanding credit exposures with connected parties 1,706,038 1,613,373

Percentage of outstanding credit exposures to connected parties
as proportion of total credit exposures 6.3% 6.7%

Percentage of outstanding credit exposures with connected parties
which is non-performing or in default - -

Bank
31 December 31 December
2020 2019
rM’000 rM’000

Outstanding credit exposures with connected parties 1,777,182 1,668,011

Percentage of outstanding credit exposures to connected parties as
proportion of total credit exposures 6.6% 7.0%

Percentage of outstanding credit exposures with connected parties
which is non-performing or in default - -

The credit exposures above are derived based on Bank Negara Malaysia’s revised Guidelines on Credit Transaction and
Exposures with Connected Parties, which are effective on 1 January 2008.
Credit transactions and exposures to connected parties as disclosed above includes the extension of credit facilities and/or
off-balance sheet credit exposures such as guarantees, trade-related facilities, and financing commitments. It also includes
holdings of equities and corporate sukuk issued by the connected parties.
The above-mentioned credit transactions with connected parties are all transacted on an arm’s length basis and on terms
and conditions no more favourable than those entered into with other counterparties with similar circumstances and credit
worthiness. Due care has been taken to ensure that the credit worthiness of connected parties are not less than that normally
required of other persons.