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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
4
GENERAL INFORMATION
50
CORPORATE MANAGEMENT
67
FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
VIII. INFORMATION ON CONSOLIDATED LIQUIDITY RISK
Source of the Parent Bank’s current liquidity risk and whether the related precautions are taken to eliminate the risk.
Restrictions on fund sources established by the board of directors for the purpose of meeting urgent liquidity demand and
making payments for matured debts
The Parent Bank’s liquidity risk has been analyzed within the context of risk management operations. Within this context Bank’s liquidity
risk has been analyzed by common ratio analysis and liquidity position analysis based on payment terms. The periodic reporting
requirement to BRSA is being performed in accordance with the regulation regarding liquidity adequacy measurement.
Whether the payments, assets and liabilities match with the interest rates, and whether the effect of mismatch on
profitability is measured
The main reason of liquidity risk of the Parent Bank is the existence of long term assets versus short term funds borrowed from abroad.
On the other hand, these short term funds have the capability of being renewed. The Parent Bank has strong fund sources besides
there is no restriction on fund sources for the purpose of meeting urgent liquidity demand and making payments for matured debts. As
a result of this, the Parent Bank has not been encountered with liquidity problems and there is no expectation of possible liquidity risk
for the future for the Parent Bank.
Internal and external sources to meet the short and long-term liquidity needs, significant sources of liquidity that are not
utilized
Shareholder’s Equity has an important portion in the funding resources. The Parent Bank is also capable of funding itself through
domestic money markets and funding resources provided by its main shareholder.
As per the BRSA Communiqué published on the Official Gazette dated 1 November 2006 and became effective starting,
“Measurement and Assessment of the Adequacy of Banks’ Liquidity”, the weekly and monthly liquidity ratios on a bank-only basis for
foreign currency assets/liabilities and total assets/liabilities should be minimum 80% and 100%, respectively. The liquidity ratios as of
31 December 2013 are as follows;
Current Period
Primary Maturity Split (Weekly)
Secondary Maturity Split (Monthly)
FC
FC+TL
FC
FC+TL
Average
166
232
109
143
Highest (%)
277
349
166
213
Lowest (%)
97
151
81
101
Prior Period
Primary Maturity Split (Weekly)
Secondary Maturity Split (Monthly)
FC
FC+TL
FC
FC+TL
Average
157
235
112
148
Highest (%)
275
402
187
265
Lowest (%)
89
107
81
105
Evaluation of amount and sources of the Bank’s cash flows
As mentioned above, the Bank has sufficient cash and cash inflow to supply it’s cash outflow literally and on time.