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116 A&T BANK ANNUAL REPORT 2015
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. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
VII. INFORMATION ON STOCK POSITION RISK
Equity investment risk due from banking book
The Bank does not have equity investment risk due to subsidiary and securities issued capital which classified banking
accounts are not traded on the stock exchange.
Information on booking value, fair value and market value of equity investments
None.
Information on equity investments realized gains or losses, revaluation increases and unrealized gains or losses
and these amounts including capital contribution
None.
VIII. LIQUIDITY RISK MANAGEMENT AND LIQUIDITY COVERAGE RATIO
Information on liquidity risk management regarding risk capacity of the Bank, responsibilities and structure
of the liquidity risk management, reporting of the liquidity risk in the Bank, the way that sharing liquidity risk
strategy, policy and implementations with the board of directors and job fields
Evaluation of capacity of liquidity risk position of the Bank depends on current liquidity position, current and estimated
asset quality, current and future income capacity, historical funding needs, estimated funding needs and decreasing
funding needs or analysis of decrease in additional funding choices. One or more actions below are done to find funds
in order to maintain liquidity needs.
- Disposal of the liquid assets
- Maintain increasing short term debts and/or additional short term time deposit and deposit like assets
- Decrease in moveable long term assets
- Increase in long term liabilities
- Increase in equity funds
Responsibility of the management of general liquidity belongs to Top Level Management, Treasury Department or Asset/
Liability Committee (“ALCO”) which is consisting of Risk Management executives. Appropriate controls and balances are
maintained in every condition.
Analysis of effects of various stress scenarios on the liquidity position and establishment of limits are crucial in order to
establish effective liquidity risk management. Limits are determined according to the size of the Bank, complexity of
transactions and suitability of the financial conditions.
One of the important components of liquidity management is management information system which is created to
offer information about the liquidity position of the Bank to the Board of Directors, top level management and related
appropriate personnel at the right time. Strong management information system is an integral part of the reliable
decision making process of the liquidity.
One of the important aspects of liquidity management is making assumptions on prospective funding needs. Although
final cash inflows and outflows can be easily calculated or estimated, the Bank also makes short-term and long-term
assumptions.
Management also has an emergency plan to be implemented in the absence of accurate projections. An effective
emergency planning consists of identifying minimum and maximum liquidity needs and weighting alternatives that will
be used to meet these needs.