BIMB Integrated Annual Report 2017

45. FINANCIAL RISK MANAGEMENT POLICIES (CONTINUED) 45.3 Credit risk (continued) Maximum exposure to credit risk The following table presents the Group’s maximum exposure to credit risk of on-balance sheet and off-balance sheet financial instruments, without taking into account of any collateral held or other credit enhancements. For on-balance sheet assets, the exposure to credit risk equals their carrying amount. For contingent liabilities, the maximum exposure to credit risk is the maximum amount that the Group would have to pay if the obligations of the instruments issued are called upon. For credit commitments, the maximum exposure to credit risk is the full amount of the undrawn credit facilities granted to customers. GROUP 2017 2016 RM’000 RM’000 Cash and short-term funds 4,807,749 4,502,270 Deposits and placements with banks and other financial institutions 1,159,085 1,153,138 Financial assets held-for-trading (excluding shares, unit trusts and investment funds) 466,954 636,462 Derivative financial assets 68,319 124,572 Financial assets available-for-sale (excluding shares, unit trusts and investment funds) 12,910,911 13,021,606 Financial assets held-to-maturity 516,524 631,086 Financing, advances and others 42,113,420 39,189,274 Other assets (net of prepayments) 323,278 398,524 Takaful assets 677,713 638,199 Statutory deposits with Bank Negara Malaysia 1,407,284 1,374,876 Sub-total 64,451,237 61,670,007 Credit related obligation: Credit commitments 9,941,346 9,750,962 Sub-total 9,941,346 9,750,962 Total credit exposures 74,392,583 71,420,969 (i) Credit quality of gross financing and advances Gross financing and advances of the main subsidiary, Bank Islam, are classified as follows: • Neither past due nor impaired financing Financing for which the borrower has not missed a contractual payment (profit or principal) when contractually due and is not impaired and there is no objective evidence of impairment. • Past due but not impaired financing Financing for which its contractual profit or principal payments are past due, but the Bank believes that impairment is not appropriate on the basis of the level of collateral available and/or the stage of collection amounts owed to the Bank. • Impaired financing Financing is classified as impaired when the principal or profit or both are past due for three months or more, or where a financing is in arrears for less than three months, but the financing exhibits indications of significant credit weakness, or when the financing is classified as rescheduled and restructured in Central Credit Reference Information System (“CCRIS”). NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 256 BIMB HOLDINGS BERHAD Integrated Annual Report 2017