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214 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
Information on counterparty credit risk
Credit limits for counterparty credit risks and internal capital allocation and distribution method
“Risk Assessment Process”, Customer Credit Packs’ all the potential risk factors associated with taking into account
the analysis, evaluation and assessment, which will further Department of Credits to present. “Limit Allocation” process
as a result of the evaluation of loan packages give customers credit limits. General limits and sub-limits are negotiated
and determined by the Department of Credits submitted to the Senior Management. The main task of Department of
Credits is evaluation of the Credit Package according to customer’s basic capabilities and financial strength by measuring
the adequacy.
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 Parent 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 Parent 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