Page 115 - A&T BANK ANNUAL REPORT 2012

113 112 A&T BANK 2012 ANNUAL REPORT •
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
XI. Risk management target and policies
The Bank’s risk strategy, policy, and procedures are approved by board of directors in order to make policies that are
determined, to be approved, to evaluate and manage the risk that bank is exposed to, and to make it in compliance with
changing circumstances, necessary conditions are determined.
The Bank’s risk management principles are summarized below:
Being selective about taken risks,
Identifying risks effectively, measuring, analyzing and managing,
Ensuring the risk-return balance,
Taking robust guarantees level to meet the existing and potential risks and monitoring closely the adequacy of collateral,
Having enough capital structure to provide present and future potential risks,
Ensuring risks that are kept within defined limits,
Controlling all activities compliance with approved policies and procedures,
Provide activities in accordance with laws and regulations,
Establish corporate risk culture within the Bank,
Providing effective reporting channels which will help to inform management level to prevent delay about every type of
inconsistencies,
In order to follow and to manage risks, Bank and market data reviewed regularly. Within the scope of classifying risks besides
of legal limits also bank internal limits are provided.
XII. Information on Fair Values of Financial Assets and Liabilities
The fair value of the held to maturity financial assets; in case of situations where market price or fair value cannot be
determined; is calculated over the quoted market prices of other investment securities that are of the same interest, maturity
and similar in other clauses.
The estimated fair value of the demand deposit represents the amount to be paid at the moment of demand. Placements of
changing rates and the fair value of the overnight deposit equal to their book values. The fair value of the fixed yield deposit is
calculated over the cash flows discounted using the market interest rates implicated on similar borrowing and other payables.
The estimated fair value of the loans is calculated over the cash flows discounted using the market interest rates implicated on
the constant interest loans. The carrying values of floating-rate loans are deemed a reasonable proxy for their fair values.