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 45 Bank only 2021 2020 (in million Baht) Concentration by sector Agricultural and mining 19,057 14,996 Real estate and construction 58,166 24,927 Public utilities and services 125,020 113,623 Retail mortgage lending 307,705 193,769 Manufacturing and commerce 374,156 311,787 Hire purchase 394,877 - Others 99,950 66,004 Total 1,378,931 725,106 6.2 Market risk Market risk refers to losses that may happen due to the fluctuations of foreign exchange rates, interest rates, and prices of equity securities, all of which may impact the value of the Bank's assets, liabilities, and off-balance sheet items. The Bank and its subsidiaries have established various market risk policies, which set standards and guidelines for market risk management. The sub-committee holds the responsibility to assist the BOD and the ROC to ensure that bankwide market risk management complies with the relevant risk policies and defined levels of risk appetite. The Bank and its subsidiaries classify the overall market risk management into two parts: trading book and banking book. The Bank and its subsidiaries have developed a policy to set standards on the book definitions and transaction classification criteria as well as the treatment of each book. Market risk in the trading book Market risk in the trading book consists of market risk from exposures of financial instruments and derivatives that are held with trading intent or for hedging other positions in the trading book. The Bank and its subsidiaries have established the market risk policies for trading book to ensure the proper management of market risks in the trading book as well as impose limits to control the risks to be within the Bank and its subsidiaries’ risk appetite. Market risk in the banking book Market risk in the banking book consists of market risks incurred from the Bank and its subsidiaries’ both on and offbalance sheet items, and derivatives designated to hedge other banking book items. The Bank and its subsidiaries have established the market risk policies for banking book, which outlines the approach for managing market risks in the banking book and setting the relevant limits appropriate to the positions of the risks in the book and in line with the Bank and its subsidiaries’ risk appetite. 289 Form 56-1 One Report 2021
RkJQdWJsaXNoZXIy ODEyMzQ3