Page 281 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 279
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

44. cReDIT exPOsuRes ARIsING fROM cReDIT TRANsAcTIONs wITh cONNecTeD PARTIes

Group
2021 2020
rM’000 rM’000

Outstanding credit exposures with connected parties 1,731,809 1,706,038

Percentage of outstanding credit exposures to connected
parties as proportion of total credit exposures 6.0% 6.3%

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

Bank
2021 2020
rM’000 rM’000

Outstanding credit exposures with connected parties 1,801,958 1,777,182

Percentage of outstanding credit exposures to connected parties
as proportion of total credit exposures 6.3% 6.6%

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 were issued on 16 July 2014.

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.