BIMB Integrated Annual Report 2017

43. RELATED PARTY TRANSACTIONS (CONTINUED) (b) The significant outstanding balances of the Group and the Company with related parties, are as follows: GROUP COMPANY NET BALANCE NET BALANCE OUTSTANDING AS AT OUTSTANDING AS AT 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Holding company Amount due from Others 17 30 – – Takaful contribution 173 – – – Amount due to Demand and investment deposits 1,505,971 2,309,846 – – Profit payable to investment deposit 873 1,437 – – Sukuk liabilities 1,380,630 1,328,597 1,279,512 1,227,494 Commitment and contingencies 2,380 60 – – Others 14 27 – – Subsidiaries Amount due from Demand and investment deposits – – 241,070 205,312 Profit payable to investment deposit – – 1,160 1,242 Others – – 268 479 Amount due to Others – – 70 11 Other related companies Amount due from Financing, advances and others 782 3,591 – – Amount due to Demand and investment deposits 230,444 259,085 – – Profit payable to investment deposit 671 434 – – Commitment and contingencies 4,869 2,846 – – 44. CAPITAL ADEQUACY The Company is not required to maintain any capital adequacy ratios. 44.1 Bank Islam The Total Capital Ratio computation consists of the capital adequacy ratios of Bank Islam and its subsidiaries (“Bank Islam”). Capital Adequacy Ratios Total capital and capital adequacy ratios of Bank Islam have been computed based on BNM’s Capital Adequacy Framework for Islamic Banks (Capital Components) issued on 4 August 2017 and Capital Adequacy Framework for Islamic Banks (Risk-Weighted Assets) issued on 2 March 2017. Bank Islam is required to meet minimum Common Equity Tier 1 (“CET I”), Tier 1 and Total Capital adequacy ratios of 4.5%, 6.0% and 8.0% respectively in 2017. To ensure that Bank Islam builds up adequate capital buffer outside period of stress, a Capital Conservation Buffer (“CCB”) of 2.5% above the minimum capital adequacy was introduced by Bank Negara Malaysia. The CCB is maintained in the form of CET I capital at 1.25% on 1 January 2017 and progressively increases by 0.625% each year to reach 2.5% on 1 January 2019. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 248 BIMB HOLDINGS BERHAD Integrated Annual Report 2017