Basic HTML Version
214
ARAP TÜRK BANKASI A.Ş.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS
ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
3. Information on counterparty credit risk
Credit limits for counterparty credit risks and internal capital allocation and distribution method
Risk Assessment process, Customer Credit Packs all the potential risk factors associated with taking into account the analysis,
evaluation and assessment, which will further Department of Credits to present. “Limit Allocation” process as a result of the evaluation
of loan packages give customers credit limits. General limits and sub-limits are negotiated and determined by the Department of
Credits submitted to the Senior Management. The main task of Department of Credits is evaluation of the Credit Package according to
customer’s basic capabilities and financial strength by measuring the adequacy.
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 Parent 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 Parent 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.