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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 CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
Information regarding to the liquidity risk mitigation techniques used
The Parent 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 Parent 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;
- The Parent 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 Parent 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.