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198 A&T BANK ANNUAL REPORT 2015
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO CONSOLIDATED 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
The Parent Bank’s internal capital requirements within the scope of the internal capital adequacy assessment
process in order to evaluate the adequacy of the approach in terms of current and future activities
The Parent Bank has procedures and reports under the name of internal capital assessment process. In order to assess
the capital adequacy of the 2015, the Parent Bank analyze the legal ratios and budget expectations to qualitate them for
the effect on the legal capital adequacy and economic capital of the Parent Bank. With these procedures and reports the
Parent Bank covers all risk in capital adequacy requirements.
II. INFORMATION ON CONSOLIDATED CREDIT RISK
1. For Credit Risk Analysis;
Information on risk concentrations by debtors or group of debtors or geographical regions and sectors, basis for risk
limits and the frequency of risk appraisals
For credit risk analysis, cash and non-cash loans granted to a debtor or debtors’ group is subject to a risk classification
in proportion to the Bank’s shareholders’ equity. In addition the geographical regions and sectoral distribution is
investigated periodically and distributions are revised according to the market conditions. The general and other
periodical limits of a firm are renewed every year and the extending of loans throughout the day is made with the
mentioned limits.
Information on determination and distribution of risk limits for daily transactions, monitoring of risk concentrations
related to off-balance sheet items per customer and dealer basis
Limit assignments, controls over loan granting process, marketing strategies, matters related to the daily operations
and pay-back process are determined in the Bank’s credit procedures. Issues related to the daily based transactions
(especially extending of cash loans) are managed in coordination with Credits Division, Risk Management Department,
Treasury, Financial Institutions Division and Central Operations Departments.
Information on periodical analysis of creditworthiness of loans and other receivables per legislation, inspection of account
vouchers taken against new loans, if not inspected, the reasons for it, credit limit renewals, collaterals against loans and
other receivables
Loans and other receivables are being followed periodically as per the “Regulation on the Principals and Procedures
Related to the Determination of the Loans and Other Receivables for which Provisions shall be set aside By Banks and to
the Provisions to be set aside”.
Consolidated financial statements of the debtors are examined as per the regulation, loan limits are being updated
in parallel to the economic conditions under the authorization of the Credit Evaluation Committee and the Top
Management. The Bank obtains sufficient guarantees for the loans and the other receivables. Firms that the Bank works
with credit is composed of the top level firms of Turkey, therefore most of the collaterals taken are “firm signature or
guarantee”. Beside from this third party guarantees, furthermore mortgage, other bank guarantees, cash blockage,
customer or personal checks are also obtained. The guarantees obtained are in parallel with the market conditions and
other banks collateral conditions.
The new rating system announced in 2013. System is rating to all credit customers based on qualification and quantity
estimating to accomplish financial data entries and answering subjective questions. Scala of the grating is between “D”
and “AAA+”. D is the minimum grade, AAA+ is the maximum grade and there is 22 grades in scala.