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MANAGEMENT AND CORPORATE GOVERNANCE PRACTICES
The software programs that
were purchased for market risk
management and asset-liability
management and hence, effective
risk management mechanisms
were continued. Full conformity
with Basel Committee and Banking
Regulation and Supervision Agency
(BRSA) regulations was ensured.
Besides, credit risk amount, the
most important component of
capital adequacy standard ratio,
is being calculated daily by a
software put into use. The daily
calculated capital adequacy
ratio is reported to department
managers and Assets & Liabilities
Committee so that the business
units can follow up the ratio and
take action if necessary. Adaptation
studies to Basel III and follow-up
of changing BRSA regulations
were among the prior issues on
the agenda of Risk Management
Department. Within the scope of
liquidity risk management, liquidity
coverage ratio is calculated daily
with support of the software and
consultancy services procured for
preferred interactive applications.
The Internal Capital Adequacy
Assessment Process Report for 2015
year-end was prepared under the
coordination of Risk Management
Department within the scope of
the relevant legislation and was
submitted to the BRSA. In addition
to these initiatives, A&T Bank has
continued efforts to switch to
full automation of reporting and
documentation procedures as
required under both internal and
external regulations.
In 2015, the Bank’s regulations for
internal systems have been updated
and improved. The Bank’s workflow
processes continued to be prepared
extensively and comprehensively
to achieve compliance with T24,
the banking system; during these
modifications, the Internal Control
Department and the Inspection
Council provided the necessary
support to the business units
involved. Within the scope of
“A&T Bank Business Continuity
Management Plan”, scheduled
activities were carried out in
coordination and the participation
of the relevant departments of the
Bank.
During the strategic decision-
making process, the Bank’s Board of
Directors and Senior Management
always assess and take into account
works conducted in the context
of internal systems management
including audit findings,
comprehensive risk analyses,
simulations, stress tests and similar
studies. The daily and other periodic
controls and audits carried out,
throughout 2015 any situations
have not been faced that could
adversely affect the activities of the
Bank nor any that could prevent the
Bank from fulfilling its obligations.
The Committee noted the overall
success of internal control and risk
management systems. It also noted
that the Bank’s activities in general
bear a manageable level of risk
and that all financial and official
reports are prepared accurately and
in compliance with all applicable
legislations.
Abdurauf Ibrahim Shneba
Chairman of the Audit Committee