VKF_FRAE_2018_uyg11

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 FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) 424 Part III: Financial Highlights and Assessment of Risk Management b) Credit Risk Mitigation Qualitative disclosure on credit risk mitigation techniques Credit risk mitigation techniques in the Parent Bank are evaluated within the scope of the “Policy Document on Credit Risk Management”. Within the scope of “Communiqué on Credit Risk Mitigation”, published in the Official Gazette dated September 6, 2014, numbered 29111 simple financial guarantee method is used for financial guarantees. Cash and cash equivalents, Treasury Support Cointaining Credit Guarantee Fund Securities and guarantees are used to mitigate credit risk. Policies regarding the valuation of financial collateral and the appraisal of the valuations and policies and procedures for the valuation of real estate established for the collateral of mortgage-backed loans, which are an asset class, have been established. These policies and procedures have been prepared in accordance with the “Communiqué on Credit Risk Mitigation” and cover the minimum requirements for collateral valuation and management. The Parent Bank receives collaterals such as mortgages, sureties/guarantees and financial collaterals for the loans given. Credit Risk Mitigation Techniques Current Period – December 31, 2018 Exposures unsecured: carrying amount Exposures secured by collaterals Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans 157,274,241 71,375,960 53,821,706 27,968,835 25,400,943 - - 2 Debt Securities 50,890,556 - - - - - - 3 Total 208,164,797 71,375,960 53,821,706 27,968,835 25,400,943 - - 4 Of which Defaulted 11,129,308 - - - - - - Prior Period- December 31, 2017 Exposures unsecured: carrying amount Exposures secured by collaterals Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans 112,239,146 78,382,140 66,629,280 3,652,598 3,128,437 - - 2 Debt Securities 30,864,623 - - - - - - 3 Total 143,103,769 78,382,140 66,629,280 3,652,598 3,128,437 - - 4 Of which Defaulted 7,943,186 - - - - - -