TMBThanachart Bank Public Company Limited and its Subsidiaries (Formerly TMB Bank Public Company Limited and its Subsidiaries) Notes to the financial statements For the year ended 31 December 2021 42 Bank Only 2021 Risk level Stage 1 Stage 2 Stage 3 Total (in million Baht) Loans to customers and accrued interest receivables - net Low 845,048 537 - 845,585 Medium 377,937 43,150 11 421,098 High 1,676 68,843 51 70,570 NPLs - - 41,678 41,678 Gross carrying amount 1,224,661 112,530 41,740 1,378,931 Less allowance for expected credit loss (12,413) (22,052) (19,987) (54,452) Carrying amount 1,212,248 90,478 21,753 1,324,479 Bank Only 2020 Risk level Stage 1 Stage 2 Stage 3 Total (in million Baht) Loans to customers and accrued interest receivables - net Low 459,316 852 - 460,168 Medium 182,197 28,046 - 210,243 High 788 31,449 - 32,237 NPLs - - 22,458 22,458 Gross carrying amount 642,301 60,347 22,458 725,106 Less allowance for expected credit loss (4,904) (14,495) (11,932) (31,331) Carrying amount 637,397 45,852 10,526 693,775 Investment in debt securities Major investment in debt securities of the Bank are investment in government and state enterprise securities which are considered as low-risk financial assets, except investment in debt securities of a public company approximately Baht 315 million are considered as non-performing financial assets. (2020: Baht 1,563 million) 6.1.2 Collateral held and other credit enhancements In addition to determining counterparty credit quality through risk rating, the Bank also uses collateral as one type of credit risk mitigation to reduce potential credit losses to the Bank and its subsidiaries. The type of eligible collateral consists of financial and non-financial collaterals which valued primarily based on their quality and liquidity. The value of collateral is primarily assessed on a prudent basis to ensure that the value assigned to the collateral remains current. The assessment of the suitability of collateral for a specific credit transaction is part of the credit decision making which undertaken in a conservative way, including collateral haircuts that are applied. The Bank and its subsidiaries strives to 286 TMBThanachart Bank Public Company Limited
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