Page 354 - Bank-Muamalat-AR2020

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

BASEL II
PILLAr 3 DISCLOSurE

1.0 SCOPE OF APPLICATION
The Pillar 3 Disclosure is prepared on a consolidated basis and comprises information on BMMB and its subsidiaries (hereinafter
referred as “the Group and the Bank”). Information on subsidiaries is available in Note 11 to the financial statements.

The basis of consolidation for financial accounting purposes is described in Notes 2.2 to the financial statements, and differs
from that used for regulatory capital purposes. The investment in subsidiary companies is deducted from regulatory capital at
entity level and consolidated at group level.
There are no significant restrictions or impediments on the transfer of funds or regulatory capital within the Group.
There were no capital deficiencies in any of the subsidiary companies of the Group as at the financial year end.

All information in the ensuing paragraphs is based on the Group’s position. Certain information on capital adequacy relating
to the Group and the Bank is presented on a voluntary basis to provide additional information to users. The capital-related
information of the Group and the Bank, which is presented on a global basis, includes its offshore banking activities in Labuan
as determined under the CAFIB.

This document discloses the Group’s and the Bank’s quantitative disclosures in accordance with the disclosure requirements as
outlined in the CAFIB – Disclosure Requirements (“Pillar 3”) issued by BNM.
These disclosures have been reviewed and verified by internal auditors and approved by the Board and Directors of the Group.

Scope of disclosure
The detailed scope of published disclosure is subject to the following classification of information:

• Insignificant, i.e. its exclusion or distortion cannot influence the assessment or decision of a person using such information
to make economic decisions, or influence such an assessment or decision,
• Reserved, i.e. its public distribution might adversely influence the position of the Group and the Bank on the market
according to regulations on competition and consumer protection,
• Subject to law-protected confidentiality, such information is not published. In case of not publishing reserved information
or the one which is subject to law-protected confidentiality, the Group and the Bank disclose information which is less
detailed.