Bank Islam Integrated Annual Report 2020

45. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES Group and Bank 2020 RM’000 2019 RM’000 Outstanding credit exposures with connected parties 2,411,078 1,597,633 Percentage of outstanding credit exposures to connected parties as a proportion of total credit exposures 3.73% 3.18% Percentage of outstanding credit exposures with connected parties which is non- performing or in default 0.000% 0.000% The above disclosure on Credit Transaction and Exposures with Connected Parties is presented in accordance with Para 9.1 of Bank Negara Malaysia’s Revised Guidelines on Credit Transaction and Exposures with Connected Parties. 46. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR COVID-19 pandemic The World Health Organisation declared the outbreak of Coronavirus disease (COVID-19) as a global pandemic in March 2020. The direct and indirect effects of the COVID-19 outbreak have impacted the global economy, markets and the Group’s and the Bank’s counterparties and clients. The COVID-19 effects have a material negative impact on the Group’s and the Bank’s results of operations. In particular, the process to determine expected credit losses (“ECL”) requires numerous estimates and assumptions, some of which require a high degree of judgement. Changes in the estimates and assumptions can result in significant changes in ECL. The Group and the Bank are not able to predict the COVID-19’s potential future direct or indirect effects other than as disclosed in Note 39(b)(iii). However, the Group and the Bank are taking actions to mitigate the impacts, and will continue to closely monitor the impact and the related risks as they evolve. Proposed placement, proposed scheme of arrangement (“SOA”), proposed internal reorganisation, proposed distribution and capital repayment and proposed transfer of listing status (collectively referred to as the ‘Proposals’) Notes to the financial statements for the financial year ended 31 December 2020 312 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion