KENANGA ANNUAL REPORT 2019

282 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (c) Liquidity risk Liquidity risk is the risk of loss as a result of the Group’s or the Bank’s inability to meet cash flow obligations on a timely and cost effective manner. Liquidity risk is managed through the Liquidity Coverage Ratio Framework (“LCR”) issued by BNM, internal policies and management oversight by Group Risk Committee. A Contingency Funding Plan (“CFP”) has been formulated covering across the policies, procedures, roles and responsibilities, funding strategies and notwithstanding, the deployment of such in a liquidity event. The Group and the Bank actively manage their operating cash flows and the availability of funding so as to ensure that all funding needs are being met. As part of its overall prudent liquidity management, the Group and the Bank maintain sufficient levels of cash or cash convertible investments to meet its working capital requirements in addition to maintaining available banking facilities, to meet any immediate operating cash flow requirements. In accordance with BNM’s Liquidity Coverage Ratio guideline, the Group and the Bank maintain a portfolio of highly marketable and diverse assets which are assumed to be easily liquidated in the event of an unforeseen interruption of cash flow. In addition, the Group and the Bank maintain a statutory deposit with BNM equal to 3.0% of net eligible liabilities. (i) Analysis of assets and liabilities by remaining contractual maturities The table below summarises the contractual maturity profile of the Group’s assets and liabilities as at 31 December 2019. The contractual maturity profile often may not reflect the actual behavioural patterns. Group 2019 On demand RM’000 Up to 1 months RM’000 >1 to 3 months RM’000 >3 to 6 months RM’000 >6 to 12 months RM’000 >1 year RM’000 Non specific maturity RM’000 Total RM’000 Assets Cash and bank balances 408,089 1,447,060 207,908 - - - - 2,063,057 Financial assets at FVTPL - - - - - - 328,680 328,680 Financial instruments at FVOCI - - 59,550 5,017 130,566 598,860 1,088 795,081 Financial instruments at AC - - 12,662 - - 100,094 - 112,756 Derivative financial assets - 34,926 - 307 29,876 65 - 65,174 Loans, advances and financing 314,868 1,247,734 5,541 8,753 63,614 424,147 17 2,064,674 Balances due from clients and brokers - 280,357 - - - - - 280,357 Other assets 3,717 8,632 52,686 1,927 - - 48,447 115,409 Assets segregated by customers - 86,376 - - - - - 86,376 Others - 495 1,420 2,093 4,024 16,624 694,554 719,210 Total assets 726,674 3,105,580 339,767 18,097 228,080 1,139,790 1,072,786 6,630,774