Page 177 - A&T BANK ANNUAL REPORT 2012

175 174 A&T BANK 2012 ANNUAL REPORT •
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
CONSOLIDATED 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
SECTION FOUR
INFORMATION ON THE FINANCIAL POSITION OF THE GROUP
I. Information on consolidated capital adequacy ratio
The Group’s consolidated capital adequacy ratio is 22.34%.
Risk measurement methods in calculation of capital adequacy ratio
Consolidated capital adequacy ratio is calculated within the scope of the “Regulation on the Measurement and Assessment of
Capital Adequacy Ratios of Banks (Regulation)”, “Regulation on Credit Risk Mitigation Techniques” and “Communiqué on Risk
Weighted Amounts for Securitization Exposures” published in Official Gazette no. 28337 dated 28 June 2012 and “Regulation on
the Equity of Banks” published in Official Gazette no. 26333 dated 1 November 2006.
The Group did not recalculate the capital adequacy ratio related to prior periods, according to “Publicly Announced
Communiqué on Financial Statements and Related Disclosures and Footnotes” which is published in Official Gazette dated 28
June 2012 and numbered 28337.
In the calculation process of capital adequacy ratio, the data which are compatible with current regulations are used. In this
case, the market and credit risk are also taken into account as “Trading Accounts” and “Banking Accounts”.
In the calculation of risk-based amounts, the Group classifies its receivables into risk groups described in 6th article of the
Regulation and considers the ratings and risk mitigating elements. The amounts are evaluated in the related risk weight group,
accordingly. The Group applies “comprehensive financial guarantee method” in the consideration of risk mitigating elements
for banking book accounts.
Trading book accounts and the items deducted from the capital base are not included in the calculation of credit risk. In
calculation of risk weighted assets, impairments, depreciation and amortization, and provisions are considered as deduction
items.
In the calculation of their risk-based values, non-cash loans are weighted after netting with specific provisions that are
classified under liabilities and calculated based on the “Regulation on Identification of and Provision against Non-Performing
Loans and Other Receivables”. The net amounts are multiplied by the rates stated in the Article 5 of “Regulation regarding
Measurement and Assessment of Capital Adequacy Ratios of Banks”, subjected to risk mitigation in accordance with the
“Communique on Credit Risk Mitigation Techniques”, classified into related risk-weighted group in accordance with Article 6 of
the Regulation, then multiplied with the risk weight of the group in accordance with the Appendix 1 of the Regulation.
In the calculation of their risk-based values, Derivative Financial Instruments and Credit Derivative Contracts which are
accounted in banking book, the receivable amounts due to counter parties are multiplied by the rates stated in the Appendix
2 of the Regulation, subjected to risk mitigation in accordance with the “Communique on Credit Risk Mitigation Techniques”,
classified into related risk-weighted group in accordance with Article 6 of the Regulation, then multiplied with the risk weight
of the group in accordance with the Appendix 1 of the same Regulation. In compliance with Article 5 of the Regulation, repo
transactions, investment securities and commodity lending transactions are accounted for “Counterparty Credit Risk”. The
Group applies “Fair Value Measurement” in the calculation of “Counterparty Credit Risk”.
Value at operational risk (VOR) is calculated in accordance with the “Basic Indicator Approach”and is included in the capital
adeqaucy ratio calculation.