KENANGA ANNUAL REPORT 2017

37. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES Group and Bank 2017 RM’000 2016 RM’000 Outstanding credit exposures with connected parties 284,320 253,809 Percentage of outstanding credit exposures to connected parties: – as a proportion of total credit exposures 7.10% 6.91% – which is impaired or in default – – The disclosure on Credit Transactions and Exposures with Connected Parties above is presented in accordance with paragraph 9.1 of BNM’s revised Guidelines on Credit Transactions and Exposures with Connected Parties, which became effective on 1 January 2008. Based on these guidelines, a connected party refers to the following: (i) Directors of the Bank and their close relatives; (ii) Controlling shareholder and his close relatives; (iii) Executive officer, being a member of management having authority and responsibility for planning, directing and/or controlling the activities of the Bank, and his close relatives; (iv) Officers who are responsible for or have the authority to appraise and/or approve credit transactions or review the status of existing credit transactions, either as a member of a committee or individually, and their close relatives; (v) Firms, partnerships, companies or any legal entities which control, or are controlled by any person listed in (i) to (iv) above, or in which they have an interest, as a director, partner, executive officer, agent or guarantor, and their subsidiaries or entities controlled by them; (vi) Any person for whom the persons listed in (i) to (iv) above is a guarantor; and (vii) Subsidiary of or an entity controlled by the Bank and its connected parties. Annual Report 2017 31 December 2017 159 notes to the financial statements