Bank Islam Integrated Annual Report 2020

MINIMUM REGULATORY CAPITAL REQUIREMENTS The Group’s main activity is Islamic banking business which focuses on retail banking and financing operations. The following tables show the minimum regulatory capital requirement to support the Group’s and the Bank’s risk weighted assets. 31.12.2020 31.12.2019 Risk- weighted assets Minimum capital requirement at 8% Risk- weighted assets Minimum capital requirement at 8% Group RM’000 RM’000 RM’000 RM’000 Credit Risk 46,862,577 3,749,006 42,551,894 3,404,152 Less: Credit Risk absorbed by IA (9,082,114) (726,569) (7,628,353) (610,268) Market Risk 638,925 51,114 580,444 46,436 Operational Risk 3,719,636 297,571 3,551,083 284,087 Total 42,139,024 3,371,122 39,055,068 3,124,407 31.12.2020 31.12.2019 Risk- weighted assets Minimum capital requirement at 8% Risk- weighted assets Minimum capital requirement at 8% Bank RM’000 RM’000 RM’000 RM’000 Credit Risk 46,842,825 3,747,426 42,536,846 3,402,948 Less: Credit Risk absorbed by IA (9,082,416) (726,593) (7,628,353) (610,268) Market Risk 638,925 51,114 580,444 46,436 Operational Risk 3,675,867 294,069 3,514,162 281,133 Total 42,075,201 3,366,016 39,003,099 3,120,249 The Group does not have any capital requirement for Large Exposure Risk as there is no amount in excess of the lowest threshold arising from equity holdings as specified in BNM’s CAFIB (Risk-Weighted Assets) Guideline. 1. SCOPE OF APPLICATION The Pillar 3 Disclosure is prepared on a consolidated basis and comprises information on the Bank (including the offshore banking operations in the Federal Territory of Labuan) and its subsidiaries. There are no significant restrictions or impediments on the transfer of funds or regulatory capital within the Group. There were no capital deficiencies in any of the subsidiary companies of the Group as at the financial year end. PILLAR 3 DISCLOSURE as at 31 December 2020 316 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion