KENANGA ANNUAL REPORT 2017

47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT’D.) Capital adequacy (cont’d.) (i) Components of Tier 1 and Tier 2 capital: (cont’d.) Breakdown of risk weighted assets in the various categories of risks are as follows: 2017 2016 Notional RM’000 Risk- weighted RM’000 Notional RM’000 Risk- weighted RM’000 Group Credit risk 4,501,487 1,068,244 4,273,833 1,145,590 Market risk – 152,115 – 154,586 Operational risk – 548,768 – 545,211 Large exposure risk – 6,400 – – Total Risk Weighted Assets 4,501,487 1,775,527 4,273,833 1,845,387 Bank Credit risk 4,300,880 1,046,479 3,933,702 1,104,692 Market risk – 130,574 – 154,586 Operational risk – 456,444 – 453,526 Large exposure risk – 6,400 – – Total Risk Weighted Assets 4,300,880 1,639,897 3,933,702 1,712,804 Kenanga Investment Bank Berhad 31 December 2017 170 notes to the financial statements