Page 350 - Bank Muamalat_AR24

348 BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2024 (29 JAMADIL AKHIR 1446H)

51. CAPITAL ADEQUACY (CONT’D.)

(b) Credit risk disclosure by risk weights of the Group and the Bank, are as follows: (cont’d.)
Bank
2024 2023
Total Total
exposures exposures
after netting after netting
and credit Total risk and credit Total risk
risk weighted risk weighted
mitigation assets mitigation assets
(Restated) (Restated)
RM’000 RM’000 RM’000 RM’000

0% 14,036,021 - 12,045,012 -
20% 4,416,488 883,298 2,414,622 482,924
35% 3,919,976 1,371,991 3,749,471 1,312,315
50% 1,475,609 737,804 1,239,287 619,644
75% 3,403,765 2,552,824 3,706,671 2,780,003
100% 18,232,631 18,232,631 17,398,736 17,398,736
150% 83,499 125,248 90,867 136,301
Risk weighted assets for credit risk 45,567,989 23,903,796 40,644,666 22,729,923
Less: Credit risk absorbed by PSIA (117,142) (126,607)
23,786,654 22,603,316

Capital management
Board of Directors holds the ultimate responsibility in approving the capital management strategy. At the
Management level, capital management strategy review is a periodic exercise that is under the purview of Asset &
Liability Committee (“ALCO”). The said exercise refers to an assessment of the Bank’s capital requirement vis-a-vis
the development of the Bank as well as broad environment, i.e. regulatory and macroeconomic setting.
The Bank has adopted the Standardised Approach for the measurement of credit and market risks, and the
Basic Indicator Approach for operational risk, in compliance with BNM’s requirements vis-a-vis the Capital
Adequacy Framework for Islamic Bank. In addition, the stress testing process forecast the Bank’s capital
requirements under plausible and worst case stress scenarios to assess the Bank’s capital to withstand the shocks.