Page 405 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 403
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

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
utilisation 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 18: commitments and contingencies
group and Bank
31 December 2021 31 December 2020
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 292,802 292,802 268,848 298,114 298,114 277,009
Trade-related contingencies 41,953 8,391 712 29,755 5,951 208
Transaction related contingencies 487,515 243,758 233,215 403,511 201,755 187,023
commitments
Credit extension commitment:
- Maturity within one year 635,148 127,029 125,609 722,818 144,564 137,659
- Maturity exceeding one year 977,994 488,997 414,004 929,662 464,831 427,279
Other miscellaneous
commitments & contingencies 25,773 14 11 7,102 - -

Islamic derivative financial
instruments
Foreign exchange related contracts 1,630,597 25,443 13,995 3,326,522 89,181 40,093
- Maturity within one year 1,630,597 25,443 13,995 3,326,522 89,181 40,093
- Maturity exceeding one year - - - - - -
Profit rate related contract 1,200,000 47,000 9,400 1,200,000 59,000 11,800
- Maturity within one year - - - - - -
- Maturity exceeding one year 1,200,000 47,000 9,400 1,200,000 59,000 11,800

Total off-balance sheet exposures 5,291,782 1,233,434 1,065,794 6,917,484 1,263,396 1,081,071