Page 112 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
UNCONSOLIDATED FINANCIAL REPORT
AS OF 31 DECEMBER 2012
(Currency: Thousands of Turkish Lira (“TL”) unless otherwise stated)
Convenience Translation of Consolidated Financial
Report Originally Issued in Turkish
See Note on I. in Section Three
VIII. Information on Liquidity Risk
Source of Bank’s current liquidity risk and whether the related precautions are taken to eliminate the risk. Restrictions
on fund sources established by the board of directors for the purpose of meeting urgent liquidity demand and making
payments for matured debts
The Bank’s liquidity risk has been analyzed within the context of risk management operations. Within this context Bank’s
liquidity risk has been analyzed by common ratio analysis and liquidity position analysis based on payment terms. The
periodic reporting requirement to BRSA is being performed in accordance with the regulation regarding liquidity adequacy
measurement.
Whether the payments, assets and liabilities match with the interest rates, and whether the effect of mismatch on
profitability is measured
The main reason of liquidity risk is the existence of long term assets versus short term funds borrowed from abroad. On the
other hand, these short term funds have the capability of being renewed. Bank has strong fund sources besides there is no
restriction on fund sources for the purpose of meeting urgent liquidity demand and making payments for matured debts. As a
result of this, the Bank has not been encountered with liquidity problems and there is no expectation of possible liquidity risk
for the future for the Bank.
Internal and external sources to meet the short and long-term liquidity needs, significant sources of liquidity that are
not utilized
Shareholder’s Equity has an important portion in the funding resources. The Bank is also capable of funding itself through
domestic money markets and funding resources provided by its main shareholder.
As per the BRSA Communiqué published on the Official Gazette dated 1 November 2006 and became effective starting from 1
September 2007, “Measurement and Assessment of the Adequacy of Banks’ Liquidity”, the weekly and monthly liquidity ratios
on a bank-only basis for foreign currency assets/liabilities and total assets/liabilities should be minimum 80% and 100%,
respectively. The liquidity ratios as of 31 December 2012 are as follows:
Current Period
Primary Maturity Split
(Weekly)
Secondary Maturity Split
(Monthly)
FC FC+TL FC FC+TL
Average 157 235 112 148
Highest (%) 275 402 187 265
Lowest (%) 89 107 81 105