Bank Islam Integrated Annual Report 2020

2. CAPITAL ADEQUACY (CONTINUED) 2.4 Capital Adequacy Ratios (continued) (c) The breakdown of risk-weighted assets by exposures in each major risk category is as follows (continued): (i) Group (continued) 31 December 2019 Gross Exposure Net Exposure Risk- Weighted Asset Minimum Capital Requirement at 8% Exposure Class RM’000 RM’000 RM’000 RM’000 Credit Risk On-Balance Sheet Exposures Sovereign/Central Banks 5,678,926 5,678,926 – – Public Sector Entities 1,436,018 1,428,892 356,962 28,557 Banks, Developments Financial Institutions (“DFIs”) and Multilateral Development Banks (“MDBs”) 303,271 303,271 61,878 4,950 Corporate 19,213,079 19,025,569 10,062,497 805,000 Regulatory Retail 17,344,379 17,237,822 16,700,409 1,336,033 Residential Mortgages 19,642,414 19,635,350 12,359,824 988,786 Higher Risk Assets 4,246 4,246 6,368 509 Other Assets 2,824,066 2,824,065 889,734 71,179 Defaulted Exposures 656,364 638,020 661,036 52,883 Total for On-Balance Sheet Exposures 67,102,763 66,776,161 41,098,708 3,287,897 Off-Balance Sheet Exposures Credit-related Exposures 1,571,531 1,559,891 1,389,598 111,168 Derivative Financial Instruments 79,772 79,772 42,897 3,432 Defaulted Exposures 14,687 14,687 20,691 1,655 Total for Off-Balance Sheet Exposures 1,665,990 1,654,350 1,453,186 116,255 Total On and Off-Balance Sheet Exposures 68,768,753 68,430,511 42,551,894 3,404,152 Less: Credit Risk absorbed by IA (7,628,353) (610,268) Long Position Short Position Market Risk Benchmark Rate Risk 6,679,457 (6,255,630) 423,828 194,136 15,531 Foreign Exchange Risk 20,882 (386,308) (365,426) 386,308 30,905 Inventory Risk – – – Total Market Risk 6,700,339 (6,641,938) 58,402 580,444 46,436 Operational Risk 3,551,083 284,087 Total RWA and Capital Requirements 39,055,068 3,124,406 Note: As at 31 December 2019, the Group did not have any exposures under securitisation. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 325