Türkiye İş Bankası A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2015
126 İşbank
Annual Report 2015
The LCR which has been introduced to ensure banks to preserve sufficient stock of high quality assets to meet their net cash outflows that may occur in the short term is calculated as
per the Communiqué on “Measurement and Assessment of the Liquidity Coverage Ratio of Banks’. The ratio is directly affected by the level of unencumbered high quality assets which
can be liquidated at any time and net cash inflows and outflows arising from the Bank’s assets, liabilities and off-balance sheet transactions.
The Bank’s high quality liquid asset stock primarily consists of cash, the accounts held at CBRT and unencumbered government bonds which are issued by Turkish Treasury.
The Bank’s principal source of funding is deposits. In terms of non-deposit borrowing, funds received from repurchase agreements, marketable securities issued and funds borrowed
from financial institutions are among the most significant funding sources of the Bank.
In order to manage liquidity effectively, concentration of liquidity sources and usages should be avoided. Due to the strong and stable core deposit base of the Bank, deposits are
received from a diversified customer portfolio. In addition, in order to provide diversification in liquidity sources and usages, liquidity concentration limits are used effectively. Total
amount of funds borrowed from a single counterparty or a risk group is closely and instantaneously monitored, taking liquidity concentration limits into account. Cash flows of
derivatives that will take place within 30 days are taken into account in calculation of liquidity coverage ratio. Cash outflows of derivatives that arise frommargin obligations, are
reflected to the results in accordance with the methodology articulated in the related legislation.
Liquidity risk of the Bank, its foreign branches and subsidiaries that are to be consolidated are managed within the regulatory limits and in accordance with the group strategies.
For the purposes of effectiveness and sustainability of liquidity management, funding sources of group companies and funding diversification opportunities in terms of markets,
instruments and tenor are evaluated and liquidity position of the group companies are monitored continuously by the Bank.
Presentation of assets and liabilities according to their remaining maturities:
Current Period
Demand
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years and
Over Unallocated
(1)
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash,
Money in Transit, Cheques Purchased) and
Balances with the Central Bank of Turkey
7,780,546 23,871,979
31,652,525
Banks
872,561
359,853
140,214
82,326
44,656
17,891
1,517,501
Financial Assets at Fair Value through Profit/Loss
56,255
384,358
323,746 559,589
257,725
10,625
1,592,298
Money Market Placements
Financial Assets Available for Sale
464,005
389,460
154,295
971,038 18,266,462 20,615,100
40,860,360
Loans
17,333,864 15,115,237 13,140,676 41,032,329 69,974,402 20,440,112
897,136 177,933,756
Held to Maturity Investments
120,730
14,393
176,375 1,066,612 2,213,521
3,591,631
Other Assets
1,727,517
58,845
14
795,401
15,987,736 18,569,513
Total Assets
26,507,231 41,969,134 13,832,169 42,821,671 90,405,258 43,297,249 16,884,872 275,717,584
Liabilities
Bank Deposits
874,677 3,954,293 1,143,285 1,741,926
7,714,181
Other Deposits
33,808,588 73,639,144 27,863,936 8,049,198 2,727,379
146,088,245
Funds Provided from Other Financial Institutions
919,319 3,326,376 14,551,001 6,163,244 3,448,559
28,408,499
Money Market Funds
18,220,498
291,254 466,385 1,111,010
20,089,147
Marketable Securities Issued
(2)
2,180,420 3,993,069 3,685,029 7,775,296 6,174,448
23,808,262
Miscellaneous Payables
6,697,564
76,638
11,612
64,567
6,850,381
Other Liabilities
2,188,372
498,077
289,413
75,013
39,707,994 42,758,869
Total Liabilities
34,683,265 107,799,610 37,192,635 28,794,564 17,916,509 9,623,007 39,707,994 275,717,584
Liquidity Gap
(8,176,034) (65,830,476) (23,360,466) 14,027,107 72,488,749 33,674,242 (22,823,122)
Net Off Balance Sheet Position
53,971
53,246 (118,698)
201,552
190,071
Derivative Financial Assets
18,457,596 9,918,991 11,956,854 10,928,718 6,861,548
58,123,707
Derivative Financial Liabilities
18,403,625 9,865,745 12,075,552 10,727,166 6,861,548
57,933,636
Non-cash Loans
23,832,827 1,921,394 4,593,432 12,338,558 6,041,198 1,913,457
50,640,866
Prior Period
Total Assets
11,646,781 32,730,356 15,083,223 51,425,463 77,689,418 35,773,472
13,423,262 237,771,975
Total Liabilities
29,431,107 97,512,815 30,256,712 22,065,174 12,834,052 9,415,908
36,256,207 237,771,975
Liquidity Gap
(17,784,326) (64,782,459) (15,173,489) 29,360,289 64,855,366 26,357,564 (22,832,945)
Net Off Balance Sheet Position
(893)
449,509 253,171
120,111
821,898
Derivative Financial Assets
15,092,277 4,825,403 6,385,217 11,898,326 3,440,596
41,641,819
Derivative Financial Liabilities
15,093,170 4,375,894 6,132,046 11,778,215 3,440,596
40,819,921
Non-cash Loans
23,650,585
934,203 3,010,341 9,167,995 4,477,159 1,574,890
42,815,173
(1)
Asset items, such as Tangible Assets, Subsidiaries and Associates, Office Supply Inventory, Prepaid Expenses and Non-Performing Loans, which are required for banking operations and which cannot be converted
into cash in short-term, other liabilities such as Provisions which are not considered as payables and Shareholders’ Equity, are shown in ‘Unallocated”.
(2)
Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans.
