Page 344 - Bank-Muamalat-Annual-Report-2021

342 bank MuaMalat Malaysia berhaD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMbEr 2021 (26 JAMADIL AwAL 1443H)

50. cAPITAL ADeQuAcy (cONT’D.)

(a) The core capital ratios and risk-weighted capital ratios of the Group are as follows: (cont’d.)
Bank
2021 2020
rM’000 rM’000

Ratio (%)
CET 1 Capital 13.590% 15.385%
Tier 1 Capital 13.590% 15.385%
Total Capital 17.237% 17.858%

The capital adequacy ratios of the Bank are computed in accordance with BNM’s Capital Adequacy Framework for
Islamic Banks (Capital Components) and Capital Adequacy Framework for Islamic Banks (Risk Weighted Assets) issued on
9 December 2020 and 3 May 2019, respectively. The Group and Bank have adopted the Standardised Approach for credit
risk and market risk, and the Basic Indicator Approach for operational risk. The minimum regulatory capital adequacy
requirement for Islamic Bank Common Equity Tier I capital, Tier I capital, and Total Capital are 4.5%, 6.0% and 8.0%
of total RWA, respectively, for the current period (December 2020: 4.5%, 6.0% and 8.0% of total RWA).
(b) Credit risk disclosure by risk weights of the Group as at 31 December, are as follows:

Group
2021 2020
total total
exposures exposures
after netting after netting
and credit Total risk and credit Total risk
risk weighted risk weighted
mitigation assets mitigation assets
rM’000 rM’000 rM’000 rM’000

0% 5,863,468 - 6,524,558 -
20% 2,485,451 497,090 1,910,642 382,128
35% 2,787,359 975,576 3,732,543 1,306,390
50% 1,170,444 585,222 1,310,235 655,118
75% 3,564,694 2,673,520 2,941,178 2,205,884
100% 12,698,045 12,698,045 10,511,929 10,511,929
150% 91,623 137,435 13,193 19,789

Risk weighted assets for credit risk 28,661,084 17,566,888 26,944,278 15,081,238
Less: credit risk absorbed by PsIA (98,453) -
Risk weighted assets for market risk 16,225 22,546
Risk weighted assets for operational risk 1,321,435 1,259,314
Total risk weighted assets 18,806,095 16,363,098