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VAKIFBANK
2014 ANNUAL REPORT
269
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT AS AT AND
FOR THE YEAR 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
Risk management strategies and policies
Risk management strategies are determined so as to support the Parent Bank’s objectives and goals and maintain Parent 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 Parent 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.
The Parent 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 occurrence.
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-datedness 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 of 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
9,504
5,095
9,504
5,095
Banks
3,568,508
3,158,351
3,568,508
3,158,351
Available-for-Sale Financial Assets
16,871,115
16,657,409
16,871,115
16,657,409
Held-to-Maturity Investments
6,854,593
5,413,171
6,983,593
5,193,841
Loans
106,355,671
88,673,058
107,248,004
88,892,545
Lease Receivables
1,089,987
900,223
1,089,987
900,223
Faktoring Receivables
510,381
132,442
510,381
132,442
Financial Liabilities
Bank Deposits
4,750,416
4,103,952
4,750,416
4,103,952
Other Deposits
88,652,197
78,935,447
88,696,535
78,935,447
Funds Borrowed
16,260,655
12,285,661
16,260,391
12,285,661
Securities Issued
10,384,708
6,820,735
10,315,024
6,820,735
Subortinated Loans
2,126,436
1,964,663
2,126,436
1,964,663
Miscellaneous Payables
3,344,419
2,841,068
3,344,419
2,841,068
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.