Page 422 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

BASEL II
PILLAR 3 DISCLOSURE

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 2023 31 December 2022
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 491,244 491,244 480,156 419,708 419,708 410,518
Trade-related contingencies 96,919 19,384 1,527 99,507 19,901 2,351
Transaction related contingencies 413,280 206,640 195,471 555,343 277,672 266,746
Commitments
Credit extension commitment:
- Maturity within one year 994,500 198,900 142,547 704,853 140,971 131,252
- Maturity exceeding one year 1,307,511 653,756 394,962 1,156,491 578,246 433,006
Other miscellaneous commitments
& contingencies 60,040 - - 59,310 - -
Islamic derivative financial
instruments
Foreign exchange related contracts 2,287,364 38,933 19,355 1,786,430 25,347 13,764
- Maturity within one year 2,287,364 38,933 19,355 1,786,430 25,347 13,7640
Total off-balance sheet exposures 5,650,858 1,608,857 1,234,018 4,781,643 1,461,845 1,257,637

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