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A&T BANK 2014 FAALİYET RAPORU
Convenience Translation of Publicly Announced Consolidated Fınancial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Consolidated Financial
Statements at 31 December 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
ANNU L R PORT 2014
SECTION FOUR
INFORMATION ON THE FINANCIAL POSITION OF THE GROUP
I. INFORMATION ON CONSOLIDATED CAPITAL ADEQUACY RATIO
The capital adequacy ratio calculations are applied in accordance with the “Regulation on Measurement and Evaluation of Capital
Adequacy of Banks” published in Official Journal No 28337 of 28 June 2012 from 1 July 2012. The consolidated basis capital
adequacy ratio of the Bank in accordance with the “Regulation on Measurement and Evaluation of Capital Adequacy of Banks” is
15.23% as of 31 December 2014 (31 December 2013: 14.31%).
The risk measurement methods used in the determination of the capital adequacy ratio:
In the calculation process of capital adequacy ratio, the data which are compatible with current regulations are used. In this case, the
market and credit risk are also taken into account as “Trading Accounts” and “Banking Accounts.
The items which are deducted from trading accounts and shareholders’ equity are not considered in the calculation of the credit risk.
Depleted and amortized assets are taken into consideration by net amounts which are calculated by the deduction of depreciation cost
and provisions.
The amount subject to credit risk for non cash loans and commitments are converted credit by using the conversion rates which are
defined in the 5th article of “Regulation on Measurement and Evaluation of Capital Adequacy of Banks”. Besides, the provisions which
are defined in “Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks
and Provisions to Be Set Aside” and taken place at the liability side of the balance sheet are also taken into consideration. And classified
to the relevant risk class by regarding the 6th article of “Regulation on credit risk mitigation techniques” and the risk is weighted in
accordance with the same regulations Annex-1.
In the calculation of the the amount subject to credit risk for Derivative Financial Instruments and Credit Derivative Contracts
transactions in the banking accounts, the counterparty receivables are converted into credit by using conversion rates stated in
Annex-2 of the regulation and subjected, be subjected to risk mitigation regarding “Regulation on Credit Risk Mitigation Techniques”,
classified to the relevant risk class by regarding the 6th article of regulation and the risk is weighted in accordance with Annex-1 of
the regaulation. In accordance with Article 5 of regulation, “Counterparty Credit Risk” is calculated for repo transactions, securities,
commodities lending transactions. “Fair Value Valuation Method” is used in counterparty credit risk calculation.
Value at operational risk (VOR) is calculated in accordance with the “Basic Indicator Method”and is included in the capital adeqaucy
ratio calculation.