NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 313 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 51. FINANCIAL RISK MANAGEMENT (CONT’D.) (c) Liquidity risk Liquidity risk is the risk of loss as a result of the Group’s or of 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 2023. The contractual maturity profile often may not reflect the actual behavioural patterns. Group 2023 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 500,062 876,186 106,165 100 - - - 1,482,513 Financial assets at FVTPL - - - - - - 438,660 438,660 Financial instruments at FVOCI - 109,834 54,811 10,066 30,171 671,057 1,343 877,282 Financial instruments at AC - - - - 20,037 450,759 - 470,796 Derivative financial assets - 73,749 1,965 146 78 - - 75,938 Loans, advances and financing 240,874 1,156,113 14,276 25,997 5,167 258,535 - 1,700,962 Balances due from clients and brokers - 570,715 - - - - - 570,715 Other assets 22,926 114,809 3,399 5,231 - - 45,016 191,381 Others - 1,654 1,259 1,889 3,728 15,696 750,373 774,599 Total assets 763,862 2,903,060 181,875 43,429 59,181 1,396,047 1,235,392 6,582,846
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