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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
2. Information on the control limits of the Parent Bank for forward transactions, options and similar contracts, management
of credit risk for these instruments together with the potential risks arising from market conditions
The Parent Bank evaluates and manages credit risks that are generated from forward transactions and similar contracts together with
potential risks in the market.
3. Information on whether the Parent Bank decreases the risk by liquidating its forward transactions, options and similar
contracts in case of facing a significant credit risk or not
The Parent Bank tries to mitigate the total risk if it’s exposed to huge amount of risk over the forward transactions.
4. For Credit Risk Analysis;
Information on whether the indemnified non-cash loans are evaluated as having the same risk weight with non-performing
loans or not
Indemnified non-cash loans are evaluated as having the same risk weight with cash loans which are collected upon maturity. These
loans are classified according to their commitments and are recorded under the follow-up accounts.
Information on whether the loans that are structured and rescheduled are included in a new rating group as determined by
the Bank’s risk management system, other than the follow-up plan defined in the banking regulations or not; whether new
precautions are taken for these methods or not; whether the Bank’s risk management accepts long term commitments as
having more risk than short term commitments which results in a diversification of risk or not
The Parent Bank acts in frame of the related regulations for the loans that are structured and rescheduled. On the other hand, while
doing risk evaluation of the loans and commitments, maturity issue is also taken into consideration.
5. For Credit Risk Analysis;
Evaluation of the significance of country specific risk if the banks have foreign operations and credit transactions in a few
countries or these operations are coordinated with a few financial entities
The Parent Bank has no banking activities abroad on the branch level. However in the loan lending processes to the foreign based
firms, the economic conditions of the country and the financial structure of the company in question is taken into consideration.
Evaluation of the Parent Bank’s competitive credit risk being an active participant of the international banking transactions
market
The Parent Bank has significant relationship with the North Africa and Middle East Region within the international trade transactions.
However in the volume of the banking transactions the Parent Bank defines its credit risk concentration as limited from these regions.