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A&T BANK 2014 FAALİYET RAPORU
ANNU L R PORT 2014
Convenience Translation of Publicly Announced Unconsolidated Financial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Unconsolidated Financial
Statements at 31 December 2014
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
Risk management system
The Risk Management System is composed of identifying, evaluating, tracing, controlling, administrating, reporting the potential risks
that the Bank may encounter and the limitation procedures mechanism of these risks.
Risk management principles
The Bank’s risk management principles are being selective about taken risks, Identifying risks effectively, measuring, analyzing and
managing, Ensuring the risk-return balance, Taking robust guarantees level to meet the existing and potential risks and monitoring
closely the adequacy of collateral, Having enough capital structure to provide present and future potential risks, Ensuring risks that are
kept within defined limits, Controlling all activities compliance with approved policies and procedures, Provide activities in accordance
with laws and regulations, Establish corporate risk culture within the Bank, Providing effective reporting channels which will help to
informmanagement level to prevent delay about every type of inconsistencies, In order to follow and to manage risks, Bank and market
data reviewed regularly. Within the scope of classifying risks besides of legal limits also bank internal limits are provided.
IX. INFORMATION ON FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
The fair value of the held to maturity financial assets; in case of situations where market price or fair value cannot be determined; is
calculated over the quoted market prices of other investment securities that are of the same interest, maturity and similar in other
clauses.
The estimated fair value of the demand deposit represents the amount to be paid at the moment of demand. Placements of changing
rates and the fair value of the overnight deposit equal to their book values. The fair value of the fixed yield deposit is calculated over the
cash flows discounted using the market interest rates implicated on similar borrowing and other payables.
The estimated fair value of the loans is calculated over the cash flows discounted using the market interest rates implicated on the
constant interest loans. The carrying values of floating-rate loans are deemed a reasonable proxy for their fair values.
In the table below; fair values and book values of some of the financial assets and liabilities are presented. The book value of the assets
and liabilities is the total of the cost and accumulated interest accruals.
Carrying Value
Fair Value
Current Period
Prior Period
Current Period
Prior Period
Financial Assets
3,092,466
2,767,749
3,106,959
2,774,348
Banks
1,558,424
1,097,807
1,558,424
1,097,807
Money market receivables
26,908
31,907
26,908
31,907
Financial assets available-
for-sale
1,159
1,080
1,159
1,080
Investment securities held-to-
maturity
141,677
189,184
156,170
195,783
Loans
1,364,298
1,447,771
1,364,298
1,447,771
Financial Liabilities
3,118,779
2,836,628
3,118,779
2,836,628
Interbank deposits
2,537,987
2,304,361
2,537,987
2,304,361
Other Deposits
569,746
382,398
569,746
382,398
Funds provided from other
financial institutions
6,884
111,838
6,884
111,838
Money market borrowings
2,935
36,508
2,935
36,508
Marketable securities issued
-
-
-
-
Miscellaneous Payables
1,227
1,523
1,227
1,523