Page 195 - A&T BANK ANNUAL REPORT 2012

193 192 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
V. Information on Consolidated Foreign Currency Exchange Rate Risk
Whether the Parent Bank is exposed to foreign exchange risk, whether the effects of this situation are estimated, and
whether the board of directors of the Bank sets limits for positions that are monitored daily
The Parent Bank complies with net general position-shareholder’s equity limits. The Bank has the possibility to borrow a
significant amount of foreign currency.
Within the context of the market risk management work of the Risk Management Department, the Parent Bank’s Exchange
rate risk is calculated and analyzed taking different dimensions of the issue in consideration. The Exchange rate risk is
measured according to market risk calculated using the Standard Method and is included in the capital adequacy ratio.
For testing effects of the unexpected exchange rate fluctuations on the Bank monthly basis stress test analysis are done.
In addition, by classifying the changes in risk factors different scenario analysis are done based on different exchange rate
expectations. The sensitivity of assets, liabilities and off-balance sheets against exchange rate are measured by an analysis on
a monthly basis.
The magnitude of hedging foreign currency debt instruments and net foreign currency investments by using hedging
derivatives
The Group does not have any financial derivatives used for hedging.
Foreign exchange risk management policy
Transactions are being hedged according to the Central Bank of Turkey’s basket of currencies instantly. Managable and
measurable risks are taken in the scope of the regulatory limits.
Foreign exchange buying rates of the last five business days before the balance sheet date as publicly announced by the
Bank are as follows
USD Foreign Exchange Buying Rate as of balance sheet date TL 1.7826
EUR Foreign Exchange Buying Rate as of balance sheet date TL 2.3517
Date US Dollars EUR
25 December 2012 TL 1.7893 TL 2.3651
26 December 2012 TL 1.7877 TL 2.3586
27 December 2012 TL 1.7848 TL 2.3566
28 December 2012 TL 1.7829 TL 2.3657
31 December 2012 TL 1.7826 TL 2.3517
The basic arithmetical average of the bank’s foreign exchange bid rate for the last thirty days:
The basic arithmetical average of the Bank’s foreign exchange bid rate for December 2012 is TL 1.7877 for USD and TL 2.3461
for EUR.