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232 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
b) Structure and organization of the risk management system
The Risk Management Department is independent from executive actions and is directly affiliated with the Board of
Directors. The Department is structured to operate under the responsibility of The Parent Bank’s Audit Committee and
the Internal Systems Director.
c) Risk management system
The Risk Management System is composed of identifying, evaluating, tracing, controlling, administrating, reporting the
potential risks that The Parent Bank may encounter and the limitation procedures mechanism of these risks.
d) Risk management principles
The Parent Bank’s risk management principles are being selective about taken risks, identifying risks effectively,
measuring, analyzing and managing, ensuring the risk-return balance, taking robust guarantees level to meet the
existing and potential risks and monitoring closely the adequacy of collateral, having enough capital structure to provide
present and future potential risks, ensuring risks that are kept within defined limits, controlling all activities compliance
with approved policies and procedures, provide activities in accordance with laws and regulations, establish corporate
risk culture within The Parent Bank, providing effective reporting channels which will help to inform management level
to prevent delay about every type of inconsistencies, in order to follow and to manage risks, The Parent Bank and market
data reviewed regularly. Within the scope of classifying risks besides of legal limits also The Parent Bank internal limits are
provided.
Leverage Ratio
Information on matters that create difference between current and previous period leverage ratio
The main factors which cause the difference between periods are core capital and total risk amounts, no significant
change occurred regarding portfolio structure.
Summarized comparative table of total asset amount in financial statements which is prepared according to TAS
and total risk amount
Prior period Current period
1 Total asset amount in financial statements which is prepared according to TAS*
7,701
7,509
2 Difference between total asset amount in financial statements which is prepared
according to TAS and Communiqué on Preparation of Financial Statements of Banks
-
-
3 Difference between derivative instruments and credit derivatives amount which
is prepared according to Communiqué on Preparation of Consolidated Financial
Statements of Banks and risk amount
88,629
68,283
4 Difference between Security or secured financing transactions amount which is
prepared according to Communiqué on Preparation of Consolidated Financial
Statements of Banks and risk amount
95,890
155,796
5 Difference between off-balance sheet transactions amount which is prepared
according to Communiqué on Preparation of Consolidated Financial Statements of
Banks and risk amount
103,350
82,147
6 Difference between amount which is prepared according to Communiqué on
Preparation of Consolidated Financial Statements of Banks and risk amount
-
-
7 Total risk amount
295,570
313,735
(*)
Related amounts are calculated by using consolidated financials which are preapared in accordance with BRSA Accounting and Financial
Reporting Legislation.
(**)
Amounts in the table are obtained on the basis of three-month weighted average.