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FINANCIAL INFORMATION
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
Provisions for guarantees and credit policies
The credit worthiness of the debtors of loans and other receivables monitored in accordance “Determination of Loans
and Other Receivables to be Reserved for and Allocation of Reserves Regulation on the Procedures and Principles”.
The necessary documentation for the loans, as provided for in the legislation are audited and credit limits at the
discretion of the Bank’s Department of Credit and Executive Management and updated in line with economic
conditions. The Bank has sufficient collateral for the loans and other receivables. Credit studied the vast majority of
companies guarantees the majority of the leading companies in Turkey due to the “firm’s signature and / or the surety”
is. In addition, real estate mortgages, bank counter-guarantee, cash blockage, financial securities and real customer
checks/securities as collateral taken. Guarantees received, market conditions and other conditions of guarantee are in
parallel banks.
Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves in accordance with Article 4
of the Regulation on the Procedures and Principles, Third, Fourth and Fifth classified in groups of all receivables, accrued
interest and similar charges interest on the principal amount owed, or whether or not additional regardless of whether
or not to refinance the non-performing loans are considered impaired.
Classifications described above, and taking into account the elements of the Bank’s loans and other receivables from
the date of the third group of at least twenty percent (20%), from the date of the fourth group of at least fifty percent
(50%) percent of the face from the date of the fifth group (100%), by special provision.
The Bank, in addition to specific provisions, standard qualities one percent of the total cash loans (1%) and letters of
credit, guarantees and sureties two thousand and other non-cash loans (0.2%) percent, two per cent of the total cash
loans under close monitoring (2%) and letters of credit, guarantees and sureties and other four thousandths of the total
non-cash loans (0.4%) rate the overall provision.
Regulation on Measurement and Assessment of Capital Adequacy of Banks reverse the trend described in
Annex-2 amounts of risk policies related to risk
The Bank do not use an internal model and calculate the probability of default. In this context, risk is not calculated in
the opposite tendency.
Assessing the amount of collateral required to provide to the credit rating of the bank in the event of decrease
The Bank’s management, corporate credit risk ratings and credit worthiness of all the companies customer rating system
established with the purpose of detection and identification. “Customer Rating” process, a variety of pre-set customer
credit worthiness “qualitative” (the company’s market position, competitiveness, customer and supplier portfolio,
certificates and documents issued by independent organizations, organizational structure, such as relations with other
financial institutions) and “financial” (current ratio, liquidity ratio, profitability and debt), the factors to be analyzed
according to the process. After the completion of financial data inputs which constituting the basis for qualitative and
quantitative measurement and answers to subjective questions, the system grades all loan customers. Grading scale
has a wide range vary from minimum “D” to maximum “AAA+” up to 22 stages. If the credit risk rating of any firm is
decreasing, there will be an investigation about coverage of guarantees. Considering the guarantee lack, the Bank make
a work through about additional guarantees which can be taken from firm. And then, related department take an action
about investigating and cancelling credit protection in case of the guarantee protaction system has failed.
Gross positive fair value of contracts, netting benefits, net of current risk amount, the amount of the net position
held for guarantees and derivatives
The Bank’s position in this context resulting from swap transactions is amounted TL 42,861.