MINIMUM REGULATORY CAPITAL REQUIREMENTS The Group’s main activity is Islamic banking business which focuses on retail banking and financing operations. The following tables show the minimum regulatory capital requirement to support the Group’s and the Bank’s risk weighted assets. Group 31.12.2023 31.12.2022 RiskWeighted Assets RM’000 Minimum Capital Requirement At 8% RM’000 RiskWeighted Assets RM’000 Minimum Capital Requirement At 8% RM’000 Credit Risk 56,803,773 4,544,302 53,650,821 4,292,066 Less: Credit Risk absorbed by IA (11,803,750) (944,300) (10,620,157) (849,613) Market Risk 392,042 31,363 84,876 6,790 Operational Risk 4,225,384 338,031 3,971,313 317,705 Total 49,617,449 3,969,396 47,086,853 3,766,948 Bank 31.12.2023 31.12.2022 RiskWeighted Assets RM’000 Minimum Capital Requirement At 8% RM’000 RiskWeighted Assets RM’000 Minimum Capital Requirement At 8% RM’000 Credit Risk 56,390,695 4,511,256 53,513,221 4,281,058 Less: Credit Risk absorbed by IA (11,817,298) (945,384) (10,705,652) (856,452) Market Risk 392,042 31,363 84,876 6,790 Operational Risk 4,150,406 332,032 3,909,361 312,749 Total 49,115,845 3,929,267 46,801,806 3,744,145 The Group does not have any capital requirement for Large Exposure Risk as there is no amount in excess of the lowest threshold arising from equity holdings as specified in BNM’s CAFIB (Risk-Weighted Assets) Guideline. 1. SCOPE OF APPLICATION The Pillar 3 Disclosure is prepared on a consolidated basis and comprises information on the Bank (including the offshore banking operations in the Federal Territory of Labuan) and its subsidiaries. There are no significant restrictions or impediments on the transfer of funds or regulatory capital within the Group. There were no capital deficiencies in any of the subsidiary companies of the Group as at the financial year end. 406 Pillar 3 Disclosure as at 31 December 2023 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023
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