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PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI
UNCONSOLIDATED FINANCIAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
The detail of collateral held against performing cash and non-cash loans by the Bank
Cash loans
31 December 2015 31 December 2014
Secured Loans:
94,156,701
78,861,414
Secured by mortgages
38,328,569
32,330,313
Secured by cash collateral
833,255
666,941
Guarantees issued by financial institutions
505,509
3,586
Secured by government institutions or government securities
1,459,632
930,621
Other collateral (pledge on assets, corporate and personal guarantees, promissory notes)
53,029,736
44,929,953
Unsecured Loans
28,817,777
25,482,028
Total performing loans
122,974,478
104,343,442
Non-cash loans
31 December 2015 31 December 2014
Secured Loans:
14,299,777
12,533,762
Secured by mortgages
2,983,589
1,092,107
Secured by cash collateral
243,589
383,395
Guarantees issued by financial institutions
229,287
-
Other collateral (pledge on assets, corporate and personal guarantees, promissory notes)
10,843,312
11,058,260
Unsecured Loans
18,768,584
16,100,161
Total non-cash loans
33,068,361
28,633,923
III. MARKET RISK
The Bank calculates market risk using standard method and allocates legal capital in compliance with “Regulation on Measurement and Assessment of
Capital Adequacy Ratios of Banks” published in 28 June dated 2012 Official Gazette no. 28337.
The market risk is defined as the potential risk of loss due to changes in interest rates, foreign exchange rates, stock prices and equity prices on balance
sheet and off-balance sheet positions of the banks.
The capital needed for general market risk and specific risks is calculated using the standard method defined by the “Regulation on Measurement and
Assessment of Capital Adequacy Ratios of Banks” and reported monthly.
In addition to the standard method, the Bank also uses internal models like Historical and Monte Carlo Simulations in measuring market risk. The Bank
also performs daily back-testing in order to measure the reliability of the models. Besides, scenario analyses are implemented in order to support the
Standard Method and internal models. In order to monitor the maturity structure of the asset and liability accounts, liquidity analysis are performed and
the duration of the Bank’s assets and liabilities is calculated.
The market risk analysis of the Bank is reported “monthly” and sent to the related regulatory institutions.
