KENANGA ANNUAL REPORT 2019

228 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 37. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES (CONT’D.) 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, connected parties refer 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. 38. COMPENSATION OF KEY MANAGEMENT PERSONNEL The remuneration of Directors and other members of key management during the financial year was as follows: Group Bank 2019 RM'000 2018 RM'000 2019 RM'000 2018 RM'000 Group Managing Director - Short term employee benefits 2,246 3,036 2,246 3,036 - Post-employment benefits: EPF 345 438 345 438 Senior Management - Short term employee benefits 14,287 14,530 10,659 11,398 - Post-employment benefits: EPF 2,180 2,246 1,629 1,759 19,058 20,250 14,879 16,631 Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Bank either directly or indirectly including all executive directors and senior management.