VAKIFBANK
2015 ANNUAL REPORT
254
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND
ITS FINANCIAL SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
For credit risk management purposes, Risk Management Department operates in
• The determination of credit risk policies in coordination with the Bank’s other units,
• The determination and monitoring of the distribution of concentration limits with respect to sector, geography and credit type,
• The contribution to the formation of rating and scoring systems,
• The submit to the Board of Directors and the senior management of not only credit risk management reports about credit portfolio’s distribution
(borrower, sector, geographical region), credit quality (impaired loans, credit risk ratings) and credit concentration but also scenario analysis reports,
stress tests and other analyses,
• The studies regarding the formation of advanced credit risk measurement approaches.
Credit risk is defined and managed for all cash and non-cash agreements and transactions, which carry counterparty risk. Loans with renegotiated
terms are followed in accordance with Bank’s credit risk management and follow-up principles. The financial position and trading operations of related
customers are continuously analyzed and principal and interest payments, scheduled in renegotiation agreement, are strictly controlled by related
departments. In the framework of Bank’s risk management concept, long term commitments are accepted more risky than short term commitments.
Besides, risk limits defined for long term commitments and collaterals that should be taken against long term commitments are handled in a wider
range compared to short term commitments.
Indemnified non-cash loans are regarded as the same risk weight with the loans that are pastdue and unpaid.
Banking operations and lending activities carried in foreign countries are not exposed to material credit risks, due to related countries’ financial
conditions, customers and their operations.
The Group classifies its past due and impaired receivables as shown below in accordance with the “Regulation on Procedures and Principles for
Determination of Qualifications of Loans and Other Receivables and Provisions to be Set Aside”.
• For which recovery of principal and interest or both delays from their terms or due dates are more than ninety days but not more than one hundred
eighty days are classified as “Group Three- Loans and Other Receivables With Limited Recovery”,
• For which recovery of principal and interest or both delays from their terms or due dates are more than one hundred and eighty days but not more
one year are classified as “Group Four- Loans and Other Receivables With Suspicious Recovery”,
• For which recovery of principal and interest or both delays from their terms or due dates are more than one year are classified as “Group Five -
Loans and Other Receivables Having the Nature of Loss”,
Regardless of the guarantees and pledges received, the Group provides 20% provision for the Loans and Other Receivables classified in Group Three,
by 30 September 2015, 50% provision for the Loans and Other Receivables classified in Group Four and 100% in Group Five. The provision amount is
recognized in profit and loss statement of the period.
The Group’s largest 100 cash loan customers compose 24.19% of the total cash loan portfolio (31 December 2014: 21.73%).
The Group’s largest 100 non-cash loan customers compose 54.84% of the total non-cash loan portfolio (31 December 2014: 56.59%).
The Group’s largest 100 cash loan customers compose 15.96 % of total assets of the Group and the Group’s largest 100 non-cash loan customers
compose 15.33% of total off-balance sheet items (31 December 2014: 14.09% and 17.47%).
The Group’s largest 200 cash loan customers compose 29.74% of the total cash loan portfolio (31 December 2014: 27.30%).
The Group’s largest 200 non-cash loan customers compose 66.75% of the total non-cash loan portfolio (31 December 2014: 68.25%).
The Group’s largest 200 cash loan customers compose 19.62 % of total assets of the Group and the Bank’s largest 200 non-cash loan customers
compose 18.66% of total off-balance sheet items (31 December 2014: 17.70% and 21.07%).
