Bank Islam Integrated Annual Report 2020

39. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Credit risk (continued) Maximum exposure to credit risk (continued) (c) Financial guarantee contracts (“FGC”) FGCs mainly comprise guarantees to customers, and to controlled entities of the Group and the Bank under the deed of cross guarantee, standby or documentary letters of credit and performance related contingencies. The Group and the Bank will typically have recourse to specific assets pledged as collateral in the event of a default by a party for which the Group and the Bank have guaranteed its obligations to a third party. (d) Financing commitments Financing commitments mainly comprise irrevocable financing commitments to finance a customer provided there is no breach of any condition established in the contract. If such financing commitments are drawn down by the customer there will typically be specific collateral requirements that will need to be satisfied by the customer in order to access to credit facilities. (i) Concentration of credit risk for Group and Bank Group 2020 Cash and short-term funds and deposits and placements with financial institutions RM’000 Financial assets at FVTPL RM’000 Derivative financial assets RM’000 Financial assets at FVOCI RM’000 Financing, advances and others RM’000 On-Balance Sheet Total RM’000 Financial guarantee contracts RM’000 Financing commitments* RM’000 Primary agriculture – – – 77,621 1,025,569 1,103,190 2,082 186,286 Mining and quarrying – – – – 64,894 64,894 16,014 80,830 Manufacturing (including agro-based) – – 9 53,677 962,181 1,015,867 143,149 579,419 Electricity, gas and water – 16,074 – 1,277,590 1,966,976 3,260,640 64,469 148,676 Wholesale & retail trade, and hotels & restaurants – – 37,921 – 897,828 935,749 128,968 401,704 Construction – – 393 906,545 2,632,171 3,539,109 515,506 1,679,249 Transport, storage and communications – – – 1,384,140 642,844 2,026,984 91,714 106,633 Finance, insurance, real estate and business activities 4,547,347 926,636 8,938 5,758,025 4,451,540 15,692,486 134,802 1,772,325 Education, health and others – – 746 870,928 1,152,752 2,024,426 515,978 1,837,248 Household sectors – – – – 40,873,880 40,873,880 – 946,401 Other sectors – – 13,658 2,165,514 – 2,179,172 329,109 1,876,456 4,547,347 942,710 61,665 12,494,040 54,670,635 72,716,397 1,941,791 9,615,227 * Financing commitments excluding derivative financial assets Notes to the financial statements for the financial year ended 31 December 2020 272 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion