Page 382 - Bank-Muamalat-AR2020

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

BASEL II
PILLAr 3 DISCLOSurE

4.0 CrEDIT rISk (GENErAL DISCLOSurE) (CONT’D)
Credit quality Financing of Customers (cont’d)

(iii) Impaired financing
A financing of customer is considered past due when any payment (whether principal and/or profit) due under the
contractual terms are received late or missed.

Financing and advances are classified as credit-impaired when they fulfil any of the following criteria:
(a) principal or profit or both are past due for ninety (90) days or more; or

(b) outstanding amount is in excess of approved limit for ninety (90) days or more in the case of revolving facilities; or
(c) where a financing is in arrears or the outstanding amount has been in excess of the approved limit for less than
ninety (90) days, the financing exhibits indications of significant credit weaknesses; or

(d) where a financing has been classified as rescheduled and restructured (‘’R&R”), the financing will be classified as
credit-impaired until payments based on the revised and/or restructured terms have been continuously paid for a
period of at least six (6) months; or
(e) for payments scheduled on intervals of ninety (90) days or more, as soon as default occurs.
In addition, financing that is considered individually significant, the Bank assesses on a case-by-case basis at each reporting
date whether there is any objective evidence that a financing is credit-impaired.
The financial effects of the adoption of MFRS 9 in relation to other areas on the Group’s and the Bank’s financial statements
are disclosed in Note 2.4.