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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
Provisions for guarantees and credit policies
The credit worthiness of the debtors of loans and other receivables monitored in accordance "Determination of Loans and Other
Receivables to be Reserved for and Allocation of Reserves Regulation on the Procedures and Principles".
The necessary documentation for the loans, as provided for in the legislation are audited and credit limits at the discretion of the Bank's
Department of Credit and Executive Management and updated in line with economic conditions. The Bank has sufficient collateral for
the loans and other receivables. Credit studied the vast majority of companies guarantees the majority of the leading companies in
Turkey due to the "firm's signature and / or the surety" is. In addition, real estate mortgages, bank counter-guarantee, cash blockage,
financial securities and real customer checks / securities as collateral taken. Guarantees received, market conditions and other
conditions of guarantee are in parallel banks.
Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves in accordance with Article 4 of the
Regulation on the Procedures and Principles, Third, Fourth and Fifth classified in groups of all receivables, accrued interest and
similar charges interest on the principal amount owed, or whether or not additional regardless of whether or not to refinance the non-
performing loans are considered impaired.
Classifications described above, and taking into account the elements of the Bank's loans and other receivables from the date of the
third group of at least twenty percent (20%), from the date of the fourth group of at least fifty percent (50%) percent of the face from
the date of the fifth group (100%), by special provision.
The Bank, in addition to specific provisions, standard qualities one percent of the total cash loans (1%) and letters of credit, guarantees
and sureties two thousand and other non-cash loans (0.2%) percent, two per cent of the total cash loans under close monitoring (2%)
and letters of credit, guarantees and sureties and other four thousandths of the total non-cash loans (0.4%) rate the overall provision.
Regulation on Measurement and Assessment of Capital Adequacy of Banks reverse the trend described in Annex-2 amounts of
risk policies related to risk.
The Bank do not use an internal model and calculate the probability of default. In this context, risk is not calculated in the opposite
tendency.
Assessing the amount of collateral required to provide to the credit rating of the bank in the event of decrease.
The Bank's management, corporate credit risk ratings and credit worthiness of all the companies customer rating system established
with the purpose of detection and identification. "Customer Rating" process, a variety of pre-set customer credit worthiness
"qualitative" (the company's market position, competitiveness, customer and supplier portfolio, certificates and documents issued by
independent organizations, organizational structure, such as relations with other financial institutions) and "financial" (current ratio,
liquidity ratio, profitability and debt), the factors to be analyzed according to the process. After the completion of financial data inputs
which constituting the basis for qualitative and quantitative measurement and answers to subjective questions, the system grades all
loan customers. Grading scale has a wide range vary fromminimum “D” to maximum “AAA+” up to 22 stages.
Gross positive fair value of contracts, netting benefits, net of current risk amount, the amount of the net position held for
guarantees and derivatives
The Bank does not have any derivative agreement in this context.
Credit Regulation on Measurement and Assessment of Capital Adequacy of Banks in Annex 2 of the 3 to 5 risk amount obtained
by the method specified in Sections
There is no agreement in this context.
The amount of the credit derivative and the current credit risk, risk classes, with the distribution of the guards.
There is no protection with credit derivatives.