Bank Islam Integrated Annual Report 2020

39. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial instruments by categories (continued) Bank 31 December 2019 Carrying amount RM’000 FVTPL RM’000 FVOCI RM’000 Amortised cost RM’000 Financial assets Cash and short-term funds and deposits and placements with financial institutions 3,471,509 – – 3,471,509 Financial assets at FVTPL 657,443 657,443 – – Derivative financial assets 33,326 33,326 – – Financial assets at FVOCI 12,147,378 – 12,147,378 – Financing, advances and others 49,472,522 – – 49,472,522 Other financial assets at amortised cost* 133,489 – – 133,489 Statutory deposits with Bank Negara Malaysia 1,170,136 – – 1,170,136 67,085,803 690,769 12,147,378 54,247,656 Financial liabilities Deposits from customers 47,476,872 – – 47,476,872 Investment accounts of customers 10,240,373 – – 10,240,373 Derivative financial liabilities 36,746 36,746 – – Bills and acceptance payable 49,084 – – 49,084 Recourse obligations on financing sold to Cagamas 1,501,187 – – 1,501,187 Subordinated Sukuk Murabahah 1,308,694 – – 1,308,694 Other liabilities^ 769,494 – – 769,494 Lease liabilities 325,559 – – 325,559 61,708,009 36,746 – 61,671,263 * Excludes prepayment ^ Excludes accruals There is no disclosure for the Group as the Group’s financial instruments are not materially different from the Bank’s financial instruments. (b) Credit risk Overview Credit risk is the risk of a customer or counterparty failing to perform its obligations. It arises from all transactions that could lead to actual, contingent or potential claims against any party, customer or obligor. The types of credit risks that the Group and the Bank considers to be material include: Default Risk, Counterparty Risk, Credit Concentration Risk, Residual/Credit Mitigation Risk, and Migration Risk. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 267