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. 31.12.2022 31.12.2021 Riskweighted assets Minimum capital requirement at 8% Riskweighted assets Minimum capital requirement at 8% Group RM’000 RM’000 RM’000 RM’000 Credit Risk 53,650,821 4,292,066 50,180,739 4,014,459 Less: Credit Risk absorbed by IA (10,620,157) (849,613) (7,423,579) (593,886) Market Risk 84,876 6,790 489,559 39,165 Operational Risk 3,971,313 317,705 3,847,886 307,831 Total 47,086,853 3,766,948 47,094,605 3,767,569 31.12.2022 31.12.2021 Riskweighted assets Minimum capital requirement at 8% Riskweighted assets Minimum capital requirement at 8% Bank RM’000 RM’000 RM’000 RM’000 Credit Risk 53,513,221 4,281,058 50,080,971 4,006,478 Less: Credit Risk absorbed by IA (10,705,652) (856,452) (7,513,437) (601,075) Market Risk 84,876 6,790 489,559 39,165 Operational Risk 3,909,361 312,749 3,797,811 303,825 Total 46,801,806 3,744,145 46,854,904 3,748,393 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 2022 Integrated Report 2022 384
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