Page 313 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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- Management of Non-Performing Assets (NPAs) is directed at creating efficiency and

developing the assets to a state where they are ready for use and better aligned with Form 56-1 One Report 2022
market demand, in order to facilitate a quick disposal. The Company sets plans to

promote and support the disposal of assets through campaigns / activities / sales
promotion schemes in order to increase the amount of asset disposals, and accelerate
the release hard-to-sell assets. If there are large quantities of long-held assets, it may

cause the Company to incur more expenses.

Maximum exposure to credit risk

The table below shows the maximum exposure to credit risk for financial instruments.
The maximum exposure is shown gross, before taking into account collateral arrangements

and any actions taken to improve.

As at 31 December 2022 and 2021, the exposure to credit risk are as follow:

(Unit: Million Baht)
31 December 2022 31 December 2021

Interbank and money market items - deposits at financial institutions 6,647 3,334
Loans purchased of receivables and accrued interest receivables 72,384 73,406
Installment sale receivables and accrued interest receivables 903 833
Accrued income from auction sale 12,299 10,252

Advance for expenses on asset acquisition and others 734 894
Other assets
- Employee receivables and accrued interest receivables 31 34
- Advances for legal expenses 39 60

Total exposure to credit risk 93,037 88,813

Credit quality analysis

Credit risk refers to the risk that a customer or a counterparty will default on its contractual
obligations resulting in a financial loss to the Company. The Company has adopted policies

to mitigate this risk, whereby there is monitoring and control of debtors to prevent default or
monitoring of compliance with the terms of debt restructuring agreements and in the event of
default or failure to comply with the conditions in the agreement urgent efforts are made to

negotiate a timely solution. If the Company is unable to negotiate with the debtor, legal
proceedings are to be followed in order to enforce conditions on the debtors and enforce
collateral.

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