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Türkiye Vakıflar Bankası Türk Anonim Ortaklığı
and Its Financial Subsidiaries Consolidated Financial Report as at and
For the Year Ended 31 December 2013
(Currency: Thousands of Turkish Lira (“TL”))
Convenience Translation of the Consolidated Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Section 3 Note I
Risk management strategies and policies
Risk management strategies are determined so as to support the Bank’s objectives and goals and maintain Bank’s presence by developing the present
risk management strategies and corporate wide risk culture in parallel with the changing business and risk environment and by applying the well
accepted national and international risk management practices.
The mission of Bank is to continuously increase the values added to the customers, employees, shareholders and society by managing the entrusted
assets and values effectively and productively. In this scope, it is fundamental to adopt forward looking risk based approaches through forming high
quality assets and good management of liabilities in all activities aiming high quality gains.
Bank’s risk management strategy is mainly based on avoiding high risks and legal risks with high impacts even if the probability of happening is low,
taking measures for the risks that may occur due to ordinary banking activities, procuring protection, transferring risks to third parties through techniques
like insurance or credit derivatives and accepting risks that have low impact and probability of occurance.
Risks are defined, measured, reported and managed in compliance with the policies and national and international standards. In this respect, not only
legal limits but also in-bank limits are considered. Up-to-dateness and compliance of the limits are monitored regularly. Credit risk mitigation policies
are determined and approved by the Board of Directors. Besides, possible risks are considered by following the changes in the market and economic
conditions.
Risk management system and organization have been formed in compliance with the Regulation on Internal Systems.
VIII. Fair values of financial assets and liabilities
Carrying Value
Fair Value
Current Year
Prior Year
Current Year
Prior Year
Financial Assets
Receivables from Interbank Money Markets
5,095
6,645
5,095
6,645
Banks
3,158,351
2,656,490
3,158,351
2,656,490
Available-for-Sale Financial Assets
16,657,409
14,334,781
16,657,409
14,334,781
Held-to-Maturity Investments
5,413,171
4,261,060
5,193,841
4,476,252
Loans
88,673,058
69,316,699
88,892,545
69,384,754
Lease Receivables
900,223
676,919
900,223
679,664
Faktoring Receivables
132,442
185,797
132,442
185,797
Financial Liabilities
Bank Deposits
4,103,952
4,052,760
4,103,952
4,052,760
Other Deposits
78,935,447
64,334,044
78,935,447
64,334,044
Funds Borrowed
12,285,661
8,100,981
12,285,661
8,100,981
Securities Issued
6,820,735
2,372,748
6,820,735
2,372,748
Subortinated Loans
1,964,663
1,630,188
1,964,663
1,630,188
Miscellaneous Payables
2,841,068
2,439,156
2,841,068
2,439,156
Fair values of available-for-sale financial assets and held-to-maturity investments are derived from market prices or in case of absence of such prices
they are derived from prices of other marketable securities, whose interest rate, maturity date and other conditions are similar to securities held.
Fair values of fixed-interest loans are calculated by discounting contractual cashflows of the loans with current market interest rates. For the loans with
floating interest rate carrying values of these loans also represents fair values.
Fair value of other assets and liabilities is calculated by adding accumulated acquisition costs and the sum of the interest accrual.
Fair value and carrying value of the borrowings is estimated to be same since most of loans have floating rates.
Fair value and carrying value of the subordinated loan is estimated to be same since the loans has obtained in a recent date compared to balance sheet
date.
VAKIFBANK ANNUAL REPORT 2013
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