Kenanga Investment Bank Berhad Annual Report 2021 280 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) Impairment assessment (cont’d.) Forward-looking and probability-weighted (cont’d.) Multiple-scenario Analysis (cont’d.) The scenarios by state of economy namely, “Booming”, “Normal” and “Downside” were used as defined in below table: State of Economy GDP Growth Rate (annual) KLCI Index (point) Downturn (D) <4.0% <1,700 Normal (N) 4.0%-6.0% -1,700 - 1,900 Booming (B) >6.0% >1,900 The assumptions used for the ECL estimates as at 31 December 2021 are set out below. Economic Factor Scenario 2021 2022 2023 GDP Growth Rate 1 N B N 2 D N N 3 D D D KLCI Index 1 N B B 2 D D N 3 D D D The assumptions used for the ECL estimates as at 31 December 2020 are set out below. Economic Factor Scenario 2020 2021 2022 GDP Growth Rate 1 B B B 2 N N N 3 D D D KLCI Index 1 D N B 2 D N N 3 D D D The weightings assigned to each state of economy as at 31 December 2021 were as follows: All portfolios State of Economy Weighting B 10% N 60% D 30% The weightings assigned to each state of economy as at 31 December 2020 were as follows: All portfolios State of Economy Weighting B 10% N 60% D 30% Notes to the Financial Statements 31 December 2021
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