309 How We Are Governed Financial Statements Shareholders’ Information Additional Information 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 issued by BNM, internal policies and management oversight by Group Risk Committee. A Contingency Funding Plan 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 2.0% 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 2021. The contractual maturity profile often may not reflect the actual behavioural patterns. Group 2021 On demand RM’000 Up to 1 month 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 526,368 1,360,597 10,419 - - - - 1,897,384 Financial assets at FVTPL - - - - - 23,873 363,449 387,322 Financial instruments at FVOCI - 169,864 49,881 70,530 98,742 347,097 1,460 737,574 Financial instruments at AC - - 1,489 - - 212,171 - 213,660 Derivative financial assets - 38 - 29,465 51,950 - - 81,453 Loans, advances and financing 229,505 1,159,841 56,391 18,657 2,943 307,979 97 1,775,413 Balances due from clients and brokers - 334,465 - - - - - 334,465 Other assets 6,740 150,491 3,134 1,754 - - 76,703 238,822 Others - 1,479 1,156 1,734 3,437 10,668 733,955 752,429 Total assets 762,613 3,176,775 122,470 122,140 157,072 901,788 1,175,664 6,418,522
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