VKF_FRAE_2017

201 VakıfBank Annual Report 2017 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI EXPLANATIONS AND NOTES RELATED TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) The improvement of risk culture in parallel with changes in economic conjectures and risk perception is considered as an important factor by the Bank and it aims to ensure the risk awareness and sensitivity in actions to be taken. The provided trainings in line with this direction, risk assesments and reportings, The risk reportings made with the Board of Directors, Top Management and the comitees, the risk apettite framework and the internal capital adequacy evaluation process that the bank generated, contributes the dissemination of the risk culture. b) Risk Weighted Amounts Risk Weighted Amount Minimum Capital Requirements Current Period Prior Period Current Period 1 Credit Risk (excluding counterparty credit risk) (*) 168,059,840 150,079,012 13,444,787 2 Standardised approach 168,059,840 150,079,012 13,444,787 3 İnternal rating based approach - - - 4 Counterparty Credit Risk 2,832,891 2,123,897 226,631 5 Standardised approach for counterparty credit risk 2,832,891 2,123,897 226,631 6 Internal model method - - - 7 Equity position in banking book under basic risk weighting or internal rating based - - - 8 Equity investments in funds – look-through approach 263 - 21 9 Equity investments in funds – mandate-based approach - - - 10 Equity investments in funds – 1250% weighted risk approach - - - 11 Settlement Risk - - - 12 Securitization positions in banking accounts - - - 13 IRB ratings-based approach - - - 14 IRB Supervisory formula approach - - - 15 SA/simplified supervisory formula approach - - - 16 Market risk 652,375 611,455 52,190 17 Standardised approach 652,375 611,455 52,190 18 Internal model approaches - - - 19 Operational Risk 14,255,142 12,290,249 1,140,412 20 Basic Indicator Approach 14,255,142 12,290,249 1,140,412 21 Standardised approach - - - 22 Advanced measurement approach - - - 23 The amounts below the thresholds for deduction from capital (subject to a 250% risk weight) - 207,773 - 24 Floor adjustment - - - 25 Total (1+4+7+8+9+10+11+12+16+19+23+24) 185,800,511 165,312,386 14,864,041 (*) Except for the amount of the discount threshold under the equit