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216 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
IV. INFORMATION RELATED TO VALUE AT OPERATIONAL RISK
“Basic Indicator Method” is used to calculate value at operational risk. Value at operational risk is calculated in
accordance with the “Regulation Regarding Measurement and Assessment of Capital Adequacy Ratio of Banks’” that
published at 6 September 2014 official gazette numbered 29111 and according to the 4th section of the regulation
“Computation of the Value at Operational Risk”, using the Parent Bank’s the last three years; 2014, 2013 and 2012 year
end gross revenues.
2012
2013
2014
Total/
Positive BG
year Count
Ratio (%)
Total
Gross Income
137,342
124,225
137,342
145,279
15
21,792
Operational Risk (Total*12,5)
272,399
V. INFORMATION ON CONSOLIDATED FOREIGN CURRENCY EXCHANGE RATE RISK
Whether the Group is exposed to foreign exchange risk, whether the effects of this situation are estimated, and
whether the board of directors of the Bank sets limits for positions that are monitored daily
The Group complies with net general position-shareholders’ equity limits. The Bank has the possibility to borrow a
significant amount of foreign currency. Within the context of the market risk management work of the Risk Management
Department, the Parent Bank’s Exchange rate risk is calculated and analyzed taking different dimensions of the issue in
consideration. The Exchange rate risk is measured according to market risk calculated using the Standard Method and
is included in the capital adequacy ratio. For testing effects of the unexpected exchange rate fluctuations on the Parent
Bank monthly basis stress test analysis are done. In addition, by classifying the changes in risk factors different scenario
analysis are done based on different exchange rate expectations. The sensitivity of assets, liabilities and off-balance sheets
against exchange rate are measured by an analysis on a monthly basis.
The magnitude of hedging foreign currency debt instruments and net foreign currency investments by using
hedging derivatives
The Group does not have any financial derivatives used for hedging.
Foreign exchange risk management policy
Transactions are being hedged according to the Central Bank of Turkey’s basket of currencies instantly. Manageable and
measurable risks are taken in the scope of the regulatory limits.
Foreign exchange buying rates of the last five business days before the balance sheet date as publicly announced
by the Parent Bank are as follows:
Date
US Dollars
EUR
24 December 2015
TL 2.9262
TL 3.1969
25 December 2015
TL 2.9187
TL 3.1968
28 December 2015
TL 2.9123
TL 3.1904
29 December 2015
TL 2.9157
TL 3.2006
30 December 2015
TL 2.9084
TL 3.1921
31 December 2015
TL 2.9076
TL 3.1776
The basic arithmetical average of the Parent Bank’s foreign exchange bid rate for the last thirty days
The basic arithmetical average of the Parent Bank’s foreign exchange bid rate for September 2015 is TL 2.9154 for USD
and TL 3.1658 for EUR.