NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 282 WE ARE KENANGA LEADERSHIP MESSAGE VALUE CREATION MODEL KENANGA INVESTMENT BANK BERHAD ANNUAL REPORT 2023 51. 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 “Downturn” were used as defined in below table: State of Economy GDP Growth Rate (annual) Imports (Billions in USD) Downturn (D) <3.5% <200 Normal (N) 3.5%-5.0% 200-250 Booming (B) >5.0% >250 The assumptions used for the ECL estimates as at 31 December 2023 are set out below. Economic Factor Scenario 2023 2024 2025 GDP Growth Rate 1 B B B 2 N N N 3 D D D Imports (Billions in USD) 1 B B B 2 B B B 3 N B B The assumptions used for the ECL estimates as at 31 December 2022 are set out below. Economic Factor Scenario 2022 2023 2024 GDP Growth Rate 1 B N B 2 B N N 3 D D D KLCI Index 1 D N N 2 D D N 3 D D D The weightings assigned to each state of economy as at 31 December 2023 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 2022 were as follows: All portfolios State of Economy Weighting B 15% N 80% D 5%
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