Bank Islam Integrated Annual Report 2020

4. CREDIT RISK (CONTINUED) 4.9 Credit Risk Mitigation (CRM) (continued) The Group manages its credit risk concentrations by diversifying its portfolios through several measures. The Group monitors credit risk limits via, among others, sector limits, programme limits, deviation limits and Single Counterparty Exposure Limits (SCEL). The following tables disclose the extent to which exposures are covered by eligible credit risk mitigants. Disclosure of Credit Risk Mitigation (CRM): 31 December 2020 Exposures before CRM Exposures covered by guarantees Exposures covered by eligible financial and non-financial collateral Exposure class RM’000 RM’000 RM’000 On-Balance Sheet Exposures Sovereign/Central Banks 8,165,933 – – Public Sector Entities 1,600,640 – 26,565 Banks, DFIs and MDBs 510,893 – – Corporates 19,584,934 540,901 1,226,255 Regulatory Retail 19,456,153 56,341 100,260 Residential Mortgages 21,610,415 453 100,804 Higher Risk Assets 3,783 – – Other Assets 1,786,255 – – Defaulted Exposures 895,405 121,080 81,717 Total for On-Balance Sheet Exposures 73,614,411 718,775 1,535,601 Off-Balance Sheet Exposures Credit-related Exposures 1,461,127 13,733 10,523 Derivative Financial Instruments 148,631 – – Defaulted Exposures 25,822 – – Total for Off-Balance Sheet Exposures 1,635,580 13,733 10,523 Total On and Off-Balance Sheet Exposures 75,249,991 732,508 1,546,124 BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 357