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224 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
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 Parent 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 Parent 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.
The degree of centralization of liquidity management and funding strategy and information about the
functioning between the Parent Bank and its shareholders
The Parent Bank is supported by well-established shareholders among most powerful financial institutions in Turkey,
Middle East and the North African region. The Parent 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 Parent Bank’s funding strategy including the policies regarding diversification of funding
sources and periods
The Parent 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 Parent 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.