VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 435 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.) Prior Period - December 31, 2017 Exposure at default (post-CRM) RWA 1 Exposure to Qualified Central Counterparties (QCCPs) (total) 410 2 Exposures for trades at QCCPs (excluding initial margin and default fund contributions); of which 20,494 410 3 (i) OTC Derivatives 20,494 410 4 (ii) Exchange-traded Derivatives - - 5 (iii) Securities financing transactions - - 6 (iv) Netting sets where cross-product netting has been approved - - 7 Segregated initial margin - 8 Non-segregated initial margin - - 9 Pre-funded default fund contributions - - 10 Unfunded default fund contributions - - 11 Exposures to non-QCCPs (total) - 12 Exposures for trades at non-QCCPs (excluding initial margin and default fund contributions); of which - - 13 (i) OTC Derivatives - - 14 (ii) Exchange-traded Derivatives - - 15 (iii) Securities financing transactions - - 16 (iv) Netting sets where cross-product netting has been approved - - 17 Segregated initial margin - 18 Non-segregated initial margin - - 19 Pre-funded default fund contributions - - 20 Unfunded default fund contributions - - 5. Explanations on Securitizations None. 6. Explanations on Market Risk Qualitative disclosure requirements related to market risk As a result of fluctuations in the financial market, the Group is exposed to market risk, depending on the exchange rates, interest rates and changes in the market prices of the shares. In order to evaluate the market risk, liquidity risk , interest risk or condensation risk that Bank is facing or could face, with the policies and limitations that are lineup for to control the risks there is “Market Risk Management Directorate’’ and it carries out the market risk management. In this extent, this Directorate design the risk measurement models, measurement results and getting regular reports from the other analyzes and give notices from the report of the analyzes to the necessary departments. Market risks get measured and monitored with the national legislation that are parallel to international applications. This market risk management process continues by including buying and selling balance sheet both internally and externally, meeting the legal necessities, being able to analyze the all risks that can be caused from buying-selling activities and by identifying the market risk that can be caused by all portfolios.