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BANK MUAMALAT MALAYSIA BERHAD




          NOTES TO THE
          FINANCIAL STATEMENTS
          31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)





          47.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)
              Categories of financial instruments (cont’d.)

                                                               Carrying     Amortised
              Bank                                               amount            cost        FVOCI         FVTPL
              2022                                              RM’000        RM’000         RM’000        RM’000


              Financial  assets
              Cash and short-term funds                        1,235,454     1,235,454             -             -
              Deposits  and  placements  with  financial  institutions     21,747     21,747        -            -
              Financial investments                            5,504,784      113,589      5,211,651       179,544
              Islamic  derivative  financial  assets              4,247               -             -        4,247
              Financing of customers                          24,006,413     23,651,235           -        355,178
              Statutory deposits with Bank Negara Malaysia      417,091       417,091              -             -
              Other  financial  assets*                          17,544        17,544               -             -

                                                              31,207,280     25,456,660     5,211,651      538,969

              Financial  liabilities
              Deposits from customers                         26,340,353     26,340,353           -              -
              Investment accounts of customers                  301,158       301,158              -             -
              Deposits and placements of banks and
                other  financial  institutions                  303,388       303,388             -              -
              Bills and acceptances payable                      20,218        20,218             -              -
              Islamic  derivative  financial  liabilities        23,111             -             -         23,111
              Other  financial  liabilities                      94,425        94,425               -            -
              Recourse  obligation  on  financing
                sold to Cagamas                                 733,174        733,174             -             -
              Subordinated sukuk                                806,596       806,596              -             -
                                                              28,622,423     28,599,312           -         23,111

              *  These balances exclude balances which are not within the scope of MFRS 9,  Financial Instruments.

              (a)   Credit  risk
                   Credit  risk  is  defined  as  the  potential  loss  to  the  Group  and  the  Bank  as  a  result  of  defaults  in  payment  by
                   counter  parties  via  financing  and  investment  activities.  The  Group  and  the  Bank  comprehend  that  credit
                   risk  is  inherent  in  its  credit  products  activities  such  as  credit  financing  facilities  activities  (funded/non-funded
                   facilities); treasury activities (including interbank money market, money and capital trading, foreign exchange);
                   and  investment  banking  activities  (including  underwriting  of  corporate  sukuk  issuance).
                   The Group’s and the Bank’s RMD and Senior Management via ERMC implement and execute the strategies
                   and policies in managing credit risk to ensure that the Bank’s exposure to credit are always kept within
                   the Group’s and the Bank’s risk appetite parameters, and the Group and the Bank to be able to identify its
                   risk  tolerance  levels.  The  administration  of  credit  risk  is  governed  by  a  full  set  of  credit-related  policies  such  as
                   Credit Risk Policy (“CRP”), and Guidelines to Credit Risk Policies (“GCRP”), product manuals and standard
                   operating  procedures.









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