239
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
2.
Information on counterparty credit risk:
A counterparty credit risk, which is accounts for trading derivatives and repo transactions tracked on both sides, such as the credit
risk the liability arising from transactions, is determined by the methodology which is used according to the Appendix-2 of the
“Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” which is published on the Official Gazette
no.28337 dated 28 June 2012 and became effective starting from 1 June 2007. Counterparty credit risk valuation method based on
the calculation of the fair value of the derivative transactions is implemented. The calculation of the amount of risk on derivative
transactions, the potential amount of credit risk is positively correlated with the sum of the costs of renewal. The calculation of the
amount of the potential credit risk of the contract amount is multiplied by the rates given in the regulation. Derivative instruments
valuation based on replacement costs and the fair value of the related contracts are obtained.
The Bank is exposed to counterparty credit risk is managed within the framework of general principles and guarantees the credit
limit allocation. Exposure to credit risk of derivative transactions with banks due to the majority of reciprocal agreements signed
with related parties are subject to the daily exchange of collateral, counterparty credit risk exposure is reduced in this way. On the
other hand, the calculation of capital adequacy under the legislation of counterparty credit risk, the risk-reducing effect of such
agreements is not considered.
Within the scope of trading accounts with credit derivatives acquired or disposed of by the Bank does not have any protection.
Quantitative information on counterparty risk:
Amount
Interest-Rate Contracts
55,543
Foreign-Exchange-Rate Contracts
459,837
Commodity Contracts
6,988
Equity-Shares Related Contracts
348
Other
Gross Positive Fair Values
1,031,506
Netting Benefits
Net Current Exposure Amount
Collaterals Received
Net Derivative Position
1,554,222
IV. Explanations on Consolidated Operational Risk
The operational risk capital requirement is calculated according to Regulation on Measurement and Assessment of Capital Adequacy
Ratios of Banks’ article number 24, is measured using the Basic Indicator Approach once a year in parallel with domestic regulations.
As of 31.12.2013 the consolidated operational risk amount is TL 13,629,748, information about the calculation is given below.
The information contained in the following table when using the basic indicator method:
2PP
Amount
1PP
Amount CP Amount
Total/Positive Years of
Gross Income Amount Rate (%)
Total
Gross Income
6,316,693 6,967,199 8,523,704
3
15 1,090,380
Value at operational risk
(Total*12.5)
13,629,748
