VKF_FRAE_2017

339 VakıfBank Annual Report 2017 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 EXPLANATIONS AND NOTES RELATED TO THE CONSOLIDATED 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 Parent 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 assessments and reportings, the risk reportings made with the Board of Directors, Top Management and the committees, the risk appetite framework and the internal capital adequacy evaluation process that the Parent Bank generated, contributes the dissemination of the risk culture Risk weighted amounts Risk Weighted Amount Minimum Capital Requirements Current Period Prior Period Current Period 1 Credit Risk (excluding counterparty credit risk) (*) 176,588,946 156,045,237 14,127,116 2 Standardized approach 176,588,946 156,045,237 14,127,116 3 İnternal rating based approach - - - 4 Counterparty Credit Risk 2,834,489 2,123,816 226,759 5 Standardized approach for counterparty credit risk 2,834,489 2,123,816 226,759 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 799,860 632,989 63,989 17 Standardized approach 799,860 632,989 63,989 18 Internal model approaches - - - 19 Operational Risk 14,523,725 12,245,361 1,161,898 20 Basic Indicator Approach 14,523,725 12,245,361 1,161,898 21 Standardized approach - - - 22 Advanced measurement approach - - - 23 The amounts below the thresholds for deduction from capital (subject to a 250% risk weight) 156,490 492,718 12,519 24 Floor adjustment - - - 25 Total (1+4+7+8+9+10+11+12+16+19+23+24) 194,903,773 171,540,121 15,592,302 (*) Except for the amount of the discount threshold under the equity