230
İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
4.
Indemnified non-cash loans are considered as having the same risk weights as unpaid cash loans.
The rating and scoring systems applied by the Parent Bank, includes detailed company analysis and enables rating of all companies
and loans without any restrictions regarding credibility. Loans and companies, which have been renewed, restructured or
rescheduled, are rated within the scope of this system. Specialized loans are evaluated by a special rating system, which is based
on the credibility of the counterparty as well as the feasibility and risk analysis of the cash flows created mainly by the projects
undertaken or the asset financed.
5.
Lending transactions abroad are conducted by determining the country risks of related countries within the context of the current
rating system and by taking the market conditions, country risks, and the relevant legal limitations into account. Furthermore, the
credibility of banks and other financial institutions established abroad is examined within the framework of the rating system that
has been developed and credit limits are assigned to the related banks and financial institutions accordingly.
6.
(i)
The share of the Group’s receivables from the top 100 and 200 cash loan customers in the overall cash loan portfolio stands at
21% and 29% respectively (31 December 2012: 22%, 29%).
(ii)
The share of the Group’s receivables from the top 100 and 200 non-cash loan customers in the overall non-cash portfolio stands
at 45% and 56% respectively (31 December 2012: 44%, 54%).
(iii)
The share of the Group’s cash and non-cash receivables from the top 100 and 200 credit customers in the overall assets and
non-cash loans stands at 14% and 20% (31 December 2012: 14%, 18%).
Companies that are among the top loan customers ranked according to cash, non-cash and total risks are leaders in their own
sectors, the loans advanced to them are in line with their volume of industrial and commercial activity. A significant part of such
loans is extended on a project basis, with their repayment sources being analyzed in accordance with the banking principles to be
considered as satisfactory, and associated risks are determined and duly covered by obtaining appropriate guarantees when deemed
necessary.
7.
The total value of the general provisions allocated for credit risk carried by the Group stands at TL 2,100,602.
8.
The Parent Bank measures the quality of its loan portfolio by applying different rating/scoring models on cash commercial/
corporate loans, retail loans and credit cards. The breakdown of the rating/scoring results, which are classified as “Strong”,
“Standard” and “Below Standard” by considering their default features, is shown below.
The loans whose borrowers’ capacity to fulfill their obligations is very good, are defined as “Strong”, whose borrowers’ capacity to
fulfill its obligations in due time is reasonable, are defined as “Standard” and whose borrowers’ capacity to fulfill their obligations is
poor, are defined as “Below Standard”.
Current Period
Prior Period
Strong
49.38%
51.46%
Standard
37.02%
33.83%
Below Standard
4.71%
5.99%
Not Rated/Scored
8.89%
8.72%
The table data comprises the behavior rating/scoring results.
