Page 402 - Bank-Muamalat-AR2020

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

BASEL II
PILLAr 3 DISCLOSurE

7.0 GENErAL DISCLOSurE FOr OFF-BALANCE ShEET ExPOSurE AND COuNTErPArTy CrEDIT rISk (“CCr”)
Commitments and contingencies

In the normal course of business, the Group and the Bank make various commitments and incur certain contingent liabilities
with legal recourse to its customers.
Notwithstanding the above, the Bank establishes specific limits to manage its exposure to off-balance sheet and counterparty
risks, which are derived based on, amongst others, the respective counterparty’s financial strength and credit rating, sector
limits, SCEL limits, connected party, domicile country’s risk rating, existing relationship with the Bank and utilization trend of
allocated limits. These limits are monitored and reviewed on a regular basis. No material losses are anticipated as a result of
these transactions. Risk weighted exposures of commitments and contingencies are as follows:
Table 19: Commitments and contingencies

Group and Bank
31 December 2020 31 December 2019
Credit Total risk Credit Total risk
The commitments and contigencies Principal equivalent weighted Principal equivalent weighted
constitute the following: amount amount amount amount amount amount
rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Contingent liabilities
Direct credit substitutes 298,114 298,114 277,009 231,450 231,450 205,352
Trade-related contingencies 29,755 5,951 208 38,679 7,736 1,494
Transaction related contingencies 403,511 201,755 187,023 428,543 214,272 201,091

Commitments
Credit extension commitment:
- Maturity within one year 722,818 144,564 137,659 879,658 175,932 171,477
- Maturity exceeding one year 929,662 464,831 427,279 777,881 388,941 373,034
Other miscellaneous
commitments & contingencies 7,102 - - - - -
Islamic derivative
financial instruments
Foreign exchange related contracts 3,326,522 89,181 40,093 2,965,283 58,660 28,638
- Maturity within one year 3,326,522 89,181 40,093 2,965,283 58,660 28,638
- Maturity exceeding one year - - - - - -
Profit rate related contract 1,200,000 59,000 11,800 1,275,000 71,188 14,238
- Maturity within one year - - - 75,000 188 38
- Maturity exceeding one year 1,200,000 59,000 11,800 1,200,000 71,000 14,200
Total off-balance sheet exposures 6,917,484 1,263,396 1,081,071 6,596,495 1,148,177 995,324