206 İşbank
Annual Report 2015
Türkiye İş Bankası A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2015
Prior Period
Total Unweighted Value
(average)
Total Weighted Value
(average)
TL+FC
FC
TL+FC
FC
HIGH QUALITY LIQUID ASSETS
1 High Quality Liquid Assets
33,641,192
18,658,920
CASH OUTFLOW
2 Retail and Small Business Customers
94,335,266
40,951,503
7,483,178
3,339,813
3 Stable deposit
39,006,968
15,106,728
1,950,348
755,336
4 Less stable deposits
55,328,298
25,844,775
5,532,830
2,584,477
5 Unsecured wholesale funding
40,389,063
18,439,410
24,753,057
10,581,500
6 Operational deposits
1,069,278
6,223
267,319
1,556
7 Non-operational deposits
27,166,929
17,377,577
14,984,256
9,640,147
8 Other unsecured funding
12,152,856
1,055,610
9,501,482
939,797
9 Secured funding
56,324
8,632
10 Other cash outflow
23,099,753
16,834,039
23,099,753
16,834,039
11
Derivatives cash outflow and liquidity needs related to market valuation
changes on derivatives or other transactions
23,099,753
16,834,039
23,099,753
16,834,039
12 Obligations related to structured financial products
13
Commitments related to debts to financial markets and other off-balance
sheet obligations
14 Other revocable off-balance sheet commitments and contractual obligations
54,660,719
30,583,815
2,733,036
1,529,191
15 Other irrevocable or conditionally revocable off-balance sheet obligations
37,591,070
2,136,448
3,852,698
277,690
16 TOTAL CASH OUTFLOW
61,978,046
32,570,865
CASH INFLOW
17 Secured lending
25,950
13,359
19,271
6,679
18 Unsecured lending
16,541,559
5,535,009
11,537,887
4,738,661
19 Other cash inflows
21,269,323
17,378,646
21,269,323
17,378,646
20 TOTAL CASH INFLOW
37,836,832
22,927,014
32,826,481
22,123,986
Total Adjusted Value
21 TOTAL HQLA Stock
33,641,192
18,658,920
22 TOTAL NET CASH OUTFLOWS
29,151,565
11,159,173
23 LIQUIDTY COVERAGE RATIO (%)
115.66
170.59
Between 30 September 2015 and 31 December 2015, while FC liquidity coverage ratio decreased from 206.46% to 165.75% due to decline in high quality liquid assets and the
negative impact of the derivative transactions, total liquidity coverage ratio increased from 102.52% to 103.59% due to the decrease in monthly cash outflows.
The Liquidity Coverage Ratio 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.
