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Financial Information and Risk Management
Türkiye İş Bankası A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2015
SECTION FOUR: INFORMATION ON THE FINANCIAL POSITION AND RISKMANAGEMENT OF THE GROUP
I. Explanations on Consolidated Capital Adequacy Ratio
The Group’s and the Parent Bank’s Common Equity Tier I capital ratios are 12.86% and 13.50%, Tier I capital ratios are 12.84% and 13.42%, capital adequacy standard ratios are
15.10% and 15.65% respectively. Consolidated and unconsolidated capital adequacy ratios are calculated within the scope of the “Regulation on Measurement and Evaluation of
Capital Adequacy of Banks”, “Regulation on Credit Risk Mitigation Techniques” and “Regulation on Calculation of Risk Weighted Amounts for Securitizations” published in the Official
Gazette no. 28337 dated 28 June 2012, effectiveness date is 1 July 2012, and the calculations are made according to the “Regulation on Equities of Banks” published in the Official
Gazette numbered 28756 dated 5 September 2013.
Capital adequacy ratios are calculated from obligated required capital of the credit risk, the market risk and the operational risk. The amount subject to credit risk on balance sheet
assets and non-cash loans, commitments and types of derivative financial instruments, risk classes and ratings of risk weights are evaluated by taking into account the relevant
legislation.
The amount subject to credit risk for non-cash loans and commitments are considered by using the conversion rates which are defined in the 5th article of “Regulation on
Measurement and Evaluation of Capital Adequacy of Banks” after deducting specific provision amount which is calculated from the article of “Determining the Nature of Loans and
Receivables and Principles and Procedures on the Allocation of Loan and Receivable Provisions” published in the Official Gazette no.26333 dated 1 November 2006. The items, which
are considered as deductions from capital amount, are not considered in the calculation of capital requirement of credit risk.
Such financial assets, liabilities and off-balance sheet transactions are classified in two separate portfolio as “trading accounts” and “banking accounts” in accordance with the legal
regulations and the Parent Bank’s internal risk policies. Actively traded asset on balance sheet, derivative transactions held for trading, and trading accounts comprising foreign
currency positions are used in calculation of market risk according to the Standard Method by the Bank. Financial instruments and non-financial assets which are excluded from
trading book and classified as banking book are subject to calculation of credit risk.
In the calculation of the Parent Bank’s operational risk, “Basic Indicator Method” is used.
Information related to the Parent Bank’s capital adequacy ratio:
Risk Weights
Bank Only
0% 10% 20% 50% 75% 100% 150% 200% 250% 1250%
Value at Credit Risk
Risk Groups
Contingent and Non-Contingent
Receivables from Central Governments
or Central Banks
63,859,977
10,648,600
678,430
474,710
Contingent and Non-Contingent
Receivables from Regional Government
or Domestic Government
34
29,754 15,120
1,491
Contingent and Non-Contingent
Receivables from Administrative Units
and Non-Commercial Enterprises
3,036
240,308
Contingent and Non-Contingent
Receivables fromMultilateral
Development Banks
523
Contingent and Non-Contingent
Receivables from International
Organizations
Contingent and Non-Contingent
Receivables from Banks and
Intermediaries
2,721
3,471,091 5,308,289
245,277
140
Contingent and Non-Contingent
Corporate Receivables
6,546,849
417,758 2,116,147
118,272,702 26,878
Contingent and Non-Contingent Retail
Receivables
279,467
34,765,756 2,559,354
Contingent and Non-Contingent
Receivables Secured by Residential
Property
32,567,213
914,055
Non-Performing Receivables (1)
897,136
Receivables are identified as high risk by
the Board
95,495
5,541,900 8,458,619 126,154
Secured Marketable Securities
Securitization Positions
Short-term Receivables and Short-term
Corporate Receivables from Banks and
Intermediaries
Investments as Collective Investment
Institutions
Other Receivables
2,844,247
160
15,026,989
124,575
(1)
In accordance with the ‘’Regulation on Measurement and Evaluation of Capital Adequacy of Banks”, credits and other receivables which are monitoring in the non-performing loans and receivables and represents
the net of value after the offsetting with the specific provisions for those.
