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ARAP TÜRK BANKASI A.Ş.
NOTES TO UNCONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
4
GENERAL INFORMATION
50
CORPORATE MANAGEMENT
67
FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
The Bank’s internal capital requirements within the scope of the internal capital adequacy assessment process in order to evaluate
the adequacy of the approach in terms of current and future activities
The Bank has procedures and reports under the name of internal capital assessment process. In order to assess the capital adequacy
of the 2013, the Bank analyse the legal ratios and budget expectations to qualitate them for the effect on the legal capital adequacy
and economic capital of the Bank. With these procedures and reports the Bank covers all risk in capital adequacy requirements.
II. INFORMATION ON CREDIT RISK
1. For Credit Risk Analysis;
Information on risk concentrations by debtors or group of debtors or geographical regions and sectors, basis for risk limits and the
frequency of risk appraisals
For credit risk analysis, cash and non-cash loans granted to a debtor or debtors’ group is subject to a risk classification in proportion
to the Bank’s shareholders’ equity. In addition the geographical regions and sectoral distribution is investigated periodically and
distributions are revised according to the market conditions. The general and other periodical limits of a firm are renewed every year
and the extending of loans throughout the day is made with the mentioned limits.
Information on determination and distribution of risk limits for daily transactions, monitoring of risk concentrations related to off-
balance sheet items per customer and dealer basis
Limit assignments, controls over loan granting process, marketing strategies, matters related to the daily operations and pay-back
process are determined in the Bank’s credit procedures. Issues related to the daily based transactions (especially extending of cash
loans) are managed in coordination with Credits Division, Risk Management Department, Treasury, Financial Institutions Division and
Central Operations Departments
Information on periodical analysis of creditworthiness of loans and other receivables per legislation, inspection of account
vouchers taken against new loans, if not inspected, the reasons for it, credit limit renewals, collaterals against loans and other
receivables
Loans and other receivables are being followed periodically as per the “Regulation on the Principals and Procedures Related to the
Determination of the Loans and Other Receivables for which Provisions shall be set aside By Banks and to the Provisions to be set
aside”.
Financial statements of the debtors are examined as per the regulation, loan limits are being updated in parallel to the economic
conditions under the authorization of the Credit Evaluation Committee and the Top Management. The Bank obtains sufficient
guarantees for the loans and the other receivables. Firms that the Bank works with credit is composed of the top level firms of
Turkey, therefore most of the collaterals taken are “firm signature or guarantee”. Beside from this third party guarantees, furthermore
mortgage, other bank guarantees, cash blockage, customer or personal checks are also obtained. The guarantees obtained are in
parallel with the market conditions and other banks collateral conditions.
The new rating system announced in 2013. System is rating to all credit customers based on qualification and quantity estimating
to accomplish financial data entries and answering subjective questions. Scala of the grating is between “D” and “AAA+”. D is the
minimum grade, AAA+ is the maximum grade and there is 22 grades in scala.