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General Information
Corporate Management
Financial Information
Risk Management Policies
The Bank’s risk strategy, policy, and procedures, which were
approved by the Board of Directors, have been set out based on
the following principles:
• To be selective in risk-taking,
• To define, measure, analyze, andmanage risks effectively,
• To secure the balance between risk and return,
• To have sound collateral covering both existing and potential
risks, closelymonitor the sufficiency of this collateral,
• To have adequate capital to cover existing and potential future
risks,
• To secure the appropriate level of risks within defined limits,
• To ensure that all operations are conducted in accordance with
approved policies and procedures,
• To ensure that all operations are in compliance with applicable
laws and regulations,
• To establish an appropriate corporate culture within the Bank
based on risk-taking,
• To create effective reporting channels, and ensure the timely
informing of relevant management authorities to eliminate any
formof discrepancy.
A&T Bank focuses on the definition, measurement, analysis
and management of the risks involved in its operations, and
determines its risk management policies and application
procedures in a consolidated manner.
• Market Risk
• Interest Rate Risk
• Currency Risk
• Counterparty Credit Risk Arising From Purchase and Sale
Accounts
• Liquidity Risk
• Model Risk
• Interest Rate Risk Arising from Banking Accounts
• Credit Risk
• Credit Risk
• Country Risk
• Residual Risk within the Scope of Credit Risk
• Operational Risk
• Residual Risk within the Scope of Operational Risk
• Information Technologies Risk
• Reputation Risk and Strategic Risk
The Risk Management Department undertakes daily analysis
of the various risks that the Bank may be exposed to, and
calculates the profitability and costs related to the management
of these risks. The aim of risk analysis is to determine the
characteristics of these risks and their possible effects on the
Bank.
Market Risk
The Bank defines the market risk as the possibility of loss that
it might be exposed to due to; general market risk, currency
risk, specific risk, commodity risk, swap risk, stock position
risk and counterparty credit risk arising from purchase and
sale accounts. The Bank’s market risk management evaluates
the risks such as “interest rate risk”, “currency risk”, “liquidity
risk” and “counterparty credit risk arising from purchase and
sale accounts” and their relations and interactions with other
potential risks. Due to the fact that the Bank does not have
a portfolio of commodities and stocks, it is not subject to
“commodity risk” and stock position risk.
The Bank aims to maximize its risk-adjusted return by
effectively managing market risk using suitable parameters in
compliance with the size of its operations.
The value-at-risk (VAR) model is also used for daily internal
measurements of market risk. Within the framework of
the internal risk limits approved by the Board of Directors,
the results of standard and VAR models are examined and
evaluated periodically. In addition to these, the following studies
are also carried out to effectively measure market risks:
• Duration analyses,
• GAP analyses,
• Sensitivity analyses,
• Ratio analyses,
• Cost/Return analyses,
• Asset/Liability structure analyses,
• Income statement analyses.