MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS MISC BERHAD | Annual Report 2017 286 37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D.) (a) Interest rate risk (cont'd.) As at 31 December 2017, the Group's and the Corporation's exposure to the risk of changes in market interest rate relates primarily to the Group and the Corporation's placement of deposits with licensed banks, cash and bank balances, loans to subsidiaries and joint ventures, interest-bearing loans and borrowings and loans from subsidiaries and joint ventures. The interest-bearing financial instruments of the Group and of the Corporation’s interest-bearing financial instruments based on carrying amount, as at reporting date were as follows:    Group    Corporation  2017   2016   2017   2016   RM'000   RM'000   RM'000   RM'000  Fixed rate instruments Financial assets Deposits with licensed banks  968,188  228,013  -  401  Deposits with IFSSC 4,539,414  5,401,275  2,565,719  3,468,220  Loans to: Subsidiaries -  -  1,221,886  1,714,960  Joint ventures -  47,887  -  47,887  Financial liabilities Fixed rate borrowings -  20,000  -  -  Floating rate borrowings (swapped to fixed rate)  2,139,273  1,740,784  -  -  Loans from subsidiaries -  -  704,816  769,533  Floating rate instruments Financial assets Cash and bank balances 393,122  929,919  12,054  235  Loans to subsidiaries -  -  2,648,513  2,994,935  Financial liabilities Floating rate borrowings 9,524,620  10,840,722  121,785  807,209  Loans from subsidiaries -  -   6,397,966  8,160,984