289 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 06 / FINANCIAL STATEMENTS 01 02 03 04 05 07 08 09 48. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT'D.) Capital adequacy (cont'd.) Components of Tier 1 and Tier 2 capital (cont'd.): ^ Refers to loss allowances measured at an amount equal to 12-month and lifetime expected credit losses and regulatory reserve, to the extent they are ascribed to non-credit impaired exposures, determined under the Standardised Approach for credit risk. * The portion of regulatory adjustments not deducted from Tier 2 (as the Group and the Bank do not have enough Tier 2 to satisfy the deduction) is deducted from the next higher level of capital; in accordance with paragraph 31.1 of the BNM's Capital Adequacy Framework (Capital Components). Breakdown of risk weighted assets in the various categories of risks are as follows: 2025 2024 Notional RM'000 Risk- weighted RM'000 Notional RM'000 Risk- weighted RM'000 Group Credit risk 6,030,600 1,928,570 7,160,027 1,911,823 Market risk - 144,177 - 284,753 Operational risk - 1,062,597 - 927,031 Large exposure risk - 98,803 - 86,524 Total Risk Weighted Assets 6,030,600 3,234,147 7,160,027 3,210,131 Bank Credit risk 5,403,220 1,694,949 6,275,954 1,798,236 Market risk - 141,314 - 282,104 Operational risk - 608,351 - 549,963 Large exposure risk - 98,803 - 86,524 Total Risk Weighted Assets 5,403,220 2,543,417 6,275,954 2,716,827
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