Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.

NOTES TO THE FINANCIAL STATEMENTS
32. FINANCIAL RISK MANAGEMENT (CONTINUED)
32.1 Credit risk (continued)
d) Maximum exposure to credit risk before collateral held or other credit enhancements
2008 2007 2008 2007
US$ US$ Riel Million Riel Million
(Unaudited) (Unaudited)
Credit risk exposures relating to on-balance
sheet assets:
Balances with other banks 28,785,020 80,725,776 117,472 323,145
Loans and advances to customers 390,602,198 332,403,990 1,594,047 1,330,613
Other assets 2,595,645 2,646,432 10,593 10,594
Credit risk exposures relating to off-balance
sheet items:
Unused portion of approved credit facilities 28,459,913 39,748,989 116,145 159,115
Guarantees, acceptances and other financial
facilities 4,613,409 11,081,079 18,827 44,358
455,056,185 466,606,266 1,857,084 1,867,825
The above table represents a worse case scenario of credit risk exposure to the Bank at 31 December 2008
and 2007, without taking account of any collateral held or other credit enhancement attached. For on-balance
sheet assets, the exposures set out above are based on net carrying amounts.
As shown above, 86% of total maximum exposure is derived from loans and advances to customers
(2007: 71%).
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to
the Bank resulting from its loans and advances on the followings:
• Almost all of loans and advances are collateralised and loan to collateral value is ranging
from 60% to 70%.
• 78% of loans portfolios are considered neither past due nor impaired (2007: 90%).
• Provision for loan losses had been provided for those individually impaired loans in
accordance with the Central Bank's requirement.
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Annual Report 2008