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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. )
The degree of centralization of liquidity management and funding strategy and information about the
functioning between the Bank and its shareholders
The Bank is supported by well-established shareholders among most powerful financial institutions in Turkey, Middle
East and the North African region. The Bank’s largest shareholder is Libyan Foreign Bank which is 100% owned by
the Central Bank of Libya and has an asset value more than USD 18 billion. Funds received from the main shareholder
Libyan Foreign Bank correspond to 50% of total liabilities. On the other hand, funds received from the Bank’s risk group
have a 62% share in liabilities.
Information on the Bank’s funding strategy including the policies regarding diversification of funding sources
and periods
The Bank obtains its fund sources mainly from the parent Libyan Foreign Bank and its subsidiaries. These Funds are
reliable sources which are ongoing for many years with renewing terms and expected to continue thereafter.
Currencies constituting minimum five percent of the Bank’s total liabilities
A large portion of the Bank’s liabilities consist of funds obtained from the parent Libyan Foreign Bank and group banks.
51% of these funds are USD and 48% are Euro.
Information regarding to the liquidity risk mitigation techniques used
The Bank’s liquidity risk mitigation techniques are retention of high-quality liquid assets on hand, provide maturity
match between assets and liabilities and having the option to obtain funds from different banks in its risk groups.
Information regarding to the usage of Stress Tests
Stress tests are applied by changing the percentage of the parameters regarding to the liquidity ratio calculation.
Subjected components, particularly high-quality liquid assets, including cash inflows and cash outflows are increased
and decreased at various rates to measure the effects on the calculation. The test results provide guidance on liquidity
management.
General information on the emergency and contingency plan of Liquidity
The Liquidity Emergency Action Plan prepared by the Bank’s ALCO was presented to the Board of Directors and
approved by Council Decision No. 4/267/8/12 at July 27, 2012.
Decisions on the plan;
- Bank-specific crisis and general market crisis has been described,
- The decision of proportional and structural changes of assets and liabilities in the balance sheet is delegated to ALCO,
- Agreed that the Liquidity Dashboard which includes available and accessible liquidity sources of the Bank, asset sales,
loan repayments and liquidity usage submitted periodically to ALCO by the Treasury Department.
- Within the framework of an effective liquidity risk management of the Treasury Department, where necessary, acting
jointly with other business units to avoid concentration of funding sources, following different funding options and
current trends and reporting on costs is expressed,
- If necessary, making changes in the Emergency Action Plan and update it according to market conditions and balance
sheet structure is delegated to ALCO.