Page 385 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 383
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

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.