Page 408 - Bank-Muamalat-AR2020

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

BASEL II
PILLAr 3 DISCLOSurE

8.2 DISCLOSurE FOr EquITIES
The classification of equity investments must be made at the point of transaction. Equities are classified under the banking book
when they are acquired and held for yield or capital growth purposes.

The Bank also engages in direct acquisition of newly-listed quoted shares. As stipulated under the TBPS, these investments are
considered under the trading position with the exception of investments in subsidiaries and associates which would require
BNM’s prior approval. Equities held under the trading book position are subject to market risk capital charge as specified in the
CAFIB.

The oversight and supervision of investments in equities and equity funds resides within the Investment Committee’s (“IC”)
authority. This covers decisions on purchase and sale of stocks and ongoing review and monitoring of performance.
Table 22: Equity exposures

Group and Bank
31 December 2020

risk unrealised
Gross Credit weighted Gain/
Publicly Traded Exposure Assets (Losses)
rM’000 rM’000 rM’000

Investment in Unit Trust Funds
Investment in Quoted Shares 105,537 105,537 (37,772)
Total 105,537 105,537 (37,772)

Cumulative realised gains arising from sales and
liquidations in the reporting period 9,583

Group and Bank
31 December 2019
risk unrealised
Gross Credit weighted Gain/
Publicly Traded Exposure Assets (Losses)
rM’000 rM’000 rM’000
Investment in Unit Trust Funds
Investment in Quoted Shares 104,077 104,077 (28,216)

Total 104,077 104,077 (28,216)

Cumulative realised gains arising from sales and
liquidations in the reporting period 1,051