BIMB Integrated Annual Report 2017

44. CAPITAL ADEQUACY (CONTINUED) 44.2 Takaful Malaysia Takaful Malaysia’s capital management policy is to optimise the efficient and effective use of resources to maximise the return on equity and provide an appropriate level of capital to protect participants and meet regulatory requirements. Takaful Malaysia is required to comply with the regulatory capital requirement prescribed in the Risk Based Capital for Takaful (“RBCT”) Framework issued by BNM where Takaful operators are required to satisfy a minimum capital adequacy ratio of 130%. As at period end, Takaful Malaysia has a capital adequacy ratio in excess of the minimum requirement. The capital structure of Takaful Malaysia as at 31 December 2017, as prescribed under the RBCT Framework is provided below: 2017 2016 RM’000 RM’000 Tier 1 capital 1,320,279 1,212,934 Tier 2 capital 5,628 (16,620) Amount deducted from capital (158,736) (122,376) 1,167,171 1,073,938 45. FINANCIAL RISK MANAGEMENT POLICIES 45.1 Categories of financial instruments The tables below provide an analysis of financial instruments categorised as follows: (a) Financing, advances and receivables (“F&R”) (b) Fair value through profit or loss (“FVTPL”) (c) Financial assets available-for-sale (“AFS”) (d) Financial assets held-to-maturity (“HTM”) (e) Financial liabilities measured at amortised cost (“FL”) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 250 BIMB HOLDINGS BERHAD Integrated Annual Report 2017