Bank Islam Integrated Annual Report 2020

22. RESERVES Group Bank Note 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 FVOCI reserve (a) 188,298 189,203 188,298 189,203 Translation reserve (b) (99,740) (106,938) (99,591) (106,805) Regulatory reserve (c) – 25,000 – 25,000 Total other reserves 88,558 107,265 88,707 107,398 Retained earnings 2,891,023 2,594,820 2,884,760 2,589,798 2,979,581 2,702,085 2,973,467 2,697,196 (a) The FVOCI reserve includes the cumulative net change in the fair value of financial assets FVOCI until the financial asset is derecognised. (b) The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of the offshore banking operations in the Federal Territory of Labuan. (c) The regulatory reserve represents the Bank’s compliance with BNM’s Guideline on Financial Reporting for Islamic Banking Institution to maintain, in aggregate, loss allowance for non-credit-impaired exposures and regulatory reserves of no less than 1% of total credit exposures, net of loss allowance for credit-impaired exposures. As at 31 December 2020, the regulatory reserve held against expected credit losses is reduced to 0%, a COVID-19 related measure to drawdown prudential buffers as permitted by BNM. 23. SOURCES AND USES OF CHARITY FUNDS Movement of sources and uses of charity funds are as follows: Group and Bank 2020 RM’000 2019 RM’000 Undistributed funds as at the beginning of the financial year 3 7 Shariah non-compliance income: Funds collected/received during the year 60 51 Uses of funds during the year: Contribution to Public Benefit (52) (55) Undistributed funds as at the end of the financial year 11 3 BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 249