BIMB Integrated Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 45. FINANCIAL RISK MANAGEMENT POLICIES (CONTINUED) 45.5 Liquidity risk (continued) (a) Banking (continued) Maturity analysis (continued) Contractual maturity of financial liabilities on an undiscounted basis (continued) UP TO >1 TO 3 >3 TO 6 >6 TO 12 OVER 1 MONTH MONTHS MONTHS MONTHS 1 YEAR TOTAL AS AT 31 DECEMBER 2016 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial Liabilities Deposit from customers 31,213,148 10,035,417 2,934,954 1,577,290 475,389 46,236,198 Investment accounts of customers 2,243,331 1,442,873 190,963 1,710 – 3,878,877 Deposit from placements of banks and other financial institutions 30,005 – – – – 30,005 Derivatives financial liabilities 5,528 17,158 65,069 23,334 – 111,089 Forward contract 2,448 16,618 65,069 23,334 – 107,469 Islamic Profit Rate Swap 3,080 540 – – – 3,620 Bills and acceptances payable 46,278 – – – – 46,278 Subordinated Sukuk Murabahah – – 19,571 19,632 1,005,519 1,044,722 Other liabilities 643,610 – – – – 643,610 34,181,900 11,495,448 3,210,557 1,621,966 1,480,908 51,990,779 Commitments and Contingencies Direct credit substitutes 26,791 61,781 22,339 82,479 94,571 287,961 Transaction related contingent items 116,380 57,291 61,654 225,820 491,042 952,187 Short term self liquidating trade related contingencies 190,681 83,402 16,076 10,330 11,763 312,252 333,852 202,474 100,069 318,629 597,376 1,552,400 (b) Takaful The following policies and procedures are in place to mitigate exposure to liquidity risk at Takaful Malaysia level: • Wide liquidity risk policy setting out the evaluation and determination of the components of liquidity risk. Compliance with the policy is monitored and reported monthly and exposures and breaches are reported to the Risk Management Committee as soon as practicable. The policy is regularly reviewed for pertinence and for changes in the risk environment. • Setting up guidelines on asset allocations, portfolio limit structures and maturity profiles of assets, in order to ensure sufficient funding is available to meet takaful contracts obligations. • Setting up contingency funding plans which specify minimum proportions of funds to meet emergency calls as well as specifying events that would trigger such plans. • The Takaful’s catastrophe excess-of-loss retakaful contract contains clauses permitting the immediate drawdown of funds to meet claims payments should claims events exceed certain amount. 277 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis S n