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Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020 33. RELATED PARTY DISCLOSURES (CONTINUED) Transactions with related parties (continued) Cash The Company receives deposits from other Morgan Stanley Group undertakings. All such transactions are entered into on an arm's length basis. 2020 2019 Interest US$'000 Balance US$'000 Interest US$'000 Balance US$'000 Amounts due to other Morgan Stanley Group undertakings 434 527 127 Funding The Company provides funding to other Morgan Stanley Group undertakings in the following form: General funding General funding is undated, unsecured, floating rate lending, other than certain funding which is dated on a rolling 395 day term. Funding may be received or provided for specific transaction related funding requirements, or for general operational purposes. The interest rates are established by the Morgan Stanley Group Treasury function for all entities within the Morgan Stanley Group and approximate the market rate of interest that the Morgan Stanley Group incurs in funding its business. Details of the outstanding balances on these funding arrangements and the related interest income or expense recognised in the income statement during the year are shown in the table below: Rolling 395 day term Amounts due from other Morgan Stanley Group undertakings 2020 2019 Interest US$'000 Balance US$'000 Interest US$'000 Balance US$'000 1,901 69,401 The Company has recognised US$37,000 (2019: US$Nil) of expense, and US$37,000 of provision for impairment relating to ECL (2019: US$Nil, relating to incurred loss impairment) on the above outstanding balance from a related party. 60 60
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