VKF_FRAE_2018_uyg11

66 Section I: Introduction VakıfBank’s Treasury Management Middle Office Department is responsible for organizing and managing Treasury systems, controlling the compliance of all Treasury limits and transactions with market prices within the limits set by the Board of Directors. The Department conduct system entry controls of Treasury transactions, their secondary approvals, end-of-day assessments of Treasury transactions, senior management reports and analyses on collateral management and Treasury transactions. The Department also ensures the efficiency and productivity of the systemic controls in these areas. The activity reports submitted to the Audit Committee in six monthly periods provide information to committee members about the results of the controls on treasury transactions and the actions taken. The Treasury Control and Reporting Module is designed to provide a Middle Office Management infrastructure and integration with other treasury systems. The Bank completed and fully operationalized this module at the end of 2018. Technology used in real time monitoring and reporting of Treasury activities VakıfBank has systematized the controlling, monitoring and reporting processes for Treasury transactions. The Bank established a world class technical control, warning and reporting infrastructure in accordance with auditing standards and internal systems. The Treasury Department’s Bank Limit Monitoring System (KGR) enables monitoring of compliance with the limits for the banks that the Manager of Treasury is authorized by the Board of Directors to deal with. Under the system, the limits determined as “Credit Limits” and “Reconciliation Limits” are monitored on a real-time basis. Treasury users are provided with the option to learn the limits before making any transaction with the banks. Furthermore, as part of Collateral Management, the daily values according to market prices of the derivative collaterals at the banks are calculated over the Treasury Control and Reporting Module. Depending on their results, the collaterals sent to counterparty banks are added to the limits of the relevant banks as risk through the Treasury Department Bank Limit Monitoring System. Warning signals have been developed within the system in order not to exceed the limits. When necessary, system reports on (Warning Report before Exceeding Limits and Report on Exceeded Limits) are shared instantly with users. Collateralization of daily derivatives for customer transactions is conducted over the VIT system. Middle Office management conducts all monitoring and reporting process via The Treasury Control and Reporting Module which includes four modules; • Treasury Valuation Function – reports the daily values of treasury portfolios according to market prices, VakıfBank is on your side with its technological competence and specialized employees in treasury management... Treasury Management Middle Office Operations VakıfBank has systematized the processes for controlling, monitoring and reporting treasury transactions. REVIEW OF OPERATIONS IN 2018