KENANGA ANNUAL REPORT 2020

290 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (c) Liquidity risk Liquidity risk is the risk of loss as a result of the Group’s or 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 2020. The contractual maturity profile often may not reflect the actual behavioural patterns. Group 2020 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 535,551 1,078,654 30,329 - - - - 1,644,534 Financial assets at FVTPL - - - - - 39,833 503,706 543,539 Financial instruments at FVOCI - 154,946 - 10,908 95,404 508,484 1,990 771,732 Financial instruments at AC - - 18,030 - - 175,005 - 193,035 Derivative financial assets - 29,440 - 1,882 64,049 65 135 95,571 Loans, advances and financing 231,055 1,199,415 7,330 45,671 53,954 331,643 181 1,869,249 Balances due from clients and brokers - 545,057 - - - - - 545,057 Other assets 15,286 108,566 3,367 1,822 - - 59,248 188,289 Others - 1,713 1,272 1,888 3,715 14,595 700,877 724,060 Total assets 781,892 3,117,791 60,328 62,171 217,122 1,069,625 1,266,137 6,575,066