KENANGA ANNUAL REPORT 2019

308 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (r) Commitments and contingencies In the normal course of business, the Group and the Bank enter into various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. As at reporting date, the commitment and contingencies are as follows: Group and Bank 2019 Principal amount RM’000 2018 Principal amount RM’000 Commitments to extend credit with maturity of less than 1 year: - share margin financing 8,676 7,507 - corporate financing 5,000 - Commitments to extend credit with maturity of more than 1 year: - corporate financing - 5,250 13,676 12,757 (s) Recognition and measurement by main class of Shariah contracts The recognition and measurement of each main class of Shariah contracts is dependent on the nature of the products, either financing or deposit product.