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Financial Information and Risk
Management
İş Bankası
Annual Report 2013
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
The Parent Bank and its financial affiliates give utmost importance to ensure that loans are furnished with collaterals. Most of the
loans extended are collateralized by taking real estate, movable or commercial enterprise under pledge, promissory notes and other
liquid assets as collateral, or by acceptance of bank letters of guarantee and individual or corporate guarantees.
Non-performing and impaired loans has classified in accordance with the Regulation on Identification of and Provision against Non-
Performing Loans and Other Receivables (the Provisioning Regulation) published on the Official Gazette no.2633 dated 1 November
2006. The detailed descriptions of these methods correspond with accounting practices, are included in Section Three Note VIII.
Credit risk is the risk reduction effects without taking into consideration the total amount of exposures after offsetting transactions
with different risk classes according to the types and amounts of disaggregated risks are listed below the average for the period.
Exposure Categories
(1)
Current Period Risk Amount Average Risk Amount
(2)
Conditional and unconditional exposures to central governments or
central banks
64,737,256
65,052,737
Conditional and unconditional exposures to regional governments or local
authorities
58,799
63,238
Conditional and unconditional exposures to administrative bodies and
non-commercial undertakings
254,626
314,989
Conditional and unconditional exposures to multilateral development
banks
1,121
1,211
Conditional and unconditional exposures to international organizations
Conditional and unconditional exposures to banks and brokerage houses
14,367,703
15,027,645
Conditional and unconditional exposures to corporate
108,876,835
99,489,857
Conditional and unconditional retail exposures
44,050,201
39,647,665
Conditional and unconditional exposures secured by real estate property
11,245,721
10,701,655
Past due items
546,352
575,069
Items in regulatory high-risk categories
15,451,032
12,344,970
Exposures in the form of bonds secured by mortgages
Securitization positions
Short term exposures to banks, brokerage houses and corporates
Exposures in the form of collective investment undertakings
175,822
111,970
Other items
12,058,836
11,793,145
(1)
Includes total risk amounts after credit conversions.
(2)
Average risk amounts are the arithmetical average of the amounts in quarterly reports prepared.
2.
There are certain control limits on forward transactions in terms of counter parties, and the risks taken for derivative instruments
are evaluated along with other potential risks resulting from the market fluctuations.
3.
As a result of the current level of customers’ needs and the progress in the domestic derivatives market in this particular area, the
Parent Bank uses derivative transactions either for hedging or for commercial purposes.
Derivative instruments with a remarkable volume are monitored with consideration that they can always be liquidated in case of
need.
