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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
2. Information on the control limits of the Bank for forward transactions, options and similar contracts, management of
credit risk for these instruments together with the potential risks arising from market conditions
The Bank evaluates and manages credit risks that are generated from forward transactions and similar contracts together with
potential risks in the market.
3. Information on whether the Bank decreases the risk by liquidating its forward transactions, options and similar contracts
in case of facing a significant credit risk or not
The Bank tries to mitigate the total risk if it’s exposed to huge amount of risk over the forward transactions.
4. For Credit Risk Analysis;
Information on whether the indemnified non-cash loans are evaluated as having the same risk weight with non-performing loans
or not
Indemnified non-cash loans are evaluated as having the same risk weight with cash loans which are collected upon maturity. These
loans are classified according to their commitments and are recorded under the follow-up accounts.
Information on whether the loans that are structured and rescheduled are included in a new rating group as determined by
the Bank’s risk management system, other than the follow-up plan defined in the banking regulations or not; whether new
precautions are taken for these methods or not; whether the Bank’s risk management accepts long term commitments as having
more risk than short term commitments which results in a diversification of risk or not
The Bank acts in frame of the related regulations for the loans that are structured and rescheduled. On the other hand, while doing risk
evaluation of the loans and commitments, maturity issue is also taken into consideration.
5. For Credit Risk Analysis;
Evaluation of the significance of country specific risk if the banks have foreign operations and credit transactions in a few countries
or these operations are coordinated with a few financial entities
The Bank has no banking activities abroad on the branch level. However in the loan lending processes to the foreign based firms, the
economic conditions of the country and the financial structure of the company in question is taken into consideration.
Evaluation of the Bank’s competitive credit risk being an active participant of the international banking transactions market
The Bank has significant relationship with the North Africa and Middle East Region within the international trade transactions. However
in the volume of the banking transactions the Bank defines its credit risk concentration as limited from these regions.
6. For Credit Risk Analysis;
The share of the top 100 and 200 cash loan customers in total loan cash loans portfolio
The share of the top 100 and 200 cash loan customers comprises 93.99% and 99.96% of the total cash loans portfolio of the Bank
respectively.
The share of the top 100 and 200 non-cash loan customers in total loan non-cash loans portfolio
The share of the top 100 and 200 non-cash loan customers comprises 99.42% and 100% of the total non-cash loans portfolio of the
Bank respectively.
The share of the total cash and non-cash loan balance of the top 100 and 200 loan customers in total assets and off-balance sheet
items
The Bank’s total cash and non-cash loans from its top 100 and 200 loan customers comprise 77.87% and 84.31% of the total assets
and off-balance sheet items.