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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2014
108
İŞBANK
ANNUAL REPORT 2014
Issuer
Türkiye İşBankasıA.Ş.
Türkiye İşBankasıA.Ş.
Coupon rate and any related index
6%
7.85%
Existence of a dividend stopper
None
None
Fully discretionary, partially discretionary or mandatory
None
None
Existence of step up or other incentive to redeem
None
None
Noncumulative or cumulative
Noncumulative
Noncumulative
Convertible or non-convertible
None
None
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts into
Write-down feature
None
None
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporarywrite-down, description of write-upmechanism
Position in subordination hierarchy in liquidation (specify instrument type
immediately senior to instrument)
Paid before shares and the primary of subordinated
debt and after all the other debts.
Paid before shares and the primary of subordinated
debt and after all the other debts.
In compliancewith article number 7 and 8 of “Own fund regulation”
None
None
Details of incompliances with article number 7 and 8 of “Own fund regulation”
Don't vest with the conditions stated in clause of the
Article 7 and the clause of 8.2. (ğ)
Don't vest with the conditions stated in clause of the
Article 7 and the clause of 8.2. (ğ)
Information on the Bank’s internal capital requirements within the scope of the internal capital adequacy assessment process in order to evaluate the
adequacy of the approach in terms of current and future activities:
On-balance sheet and off-balance sheet financial risks and activities arising from financial assets and liabilities, against damage caused by exposure to financial risk that are necessary
to determine the level of capital and the determined level, taking into consideration the specified minimum levels of statutory and internal continuity of the supply and monitoring
process “Capital Adequacy Policy” implemented within the framework by the Bank.
Capital adequacy level is; monitored and analyzed taking into consideration the possible changes on economic conjuncture, risk factors, balance sheet structure and size, profitability
and, the dividend policy by the Bank. As for the level of capital adequacy with a view to a forward-looking analysis and projection studies affect the Bank’s planning and decision
processes.
The Bank’s internal capital adequacy assessment process (“ICAAP”) is comprised of not only internal capital adequacy assessment process, but also determining the risks that the Bank
faces on an internal perspective, including prospective internal capital requirements, capital structure, targets; and strategies are assessed considering its operations and risks. This
internal capital adequacy assessment process also includes the actions taken into account under different conditions and stress scenarios.
During the of internal capital adequacy assessment process, in addition to risks in regulatory capital adequacy (credit risk, market risk and operational risk) assessment of capital
requirement is calculated within the principle of proportionality by using the risks that may affect the Bank’s risk profile in addition to the mentioned risks .
II. Explanations on Credit Risk
1.
Credit risk is defined as the possibility of incurring loss where the counterparty in a transaction, partially or completely fails to meet its contractual obligations in due time in an
agreement with the Bank.
The Bank’s position against the credit risk limits defined by the current legislation is monitored by the Board. Within this framework, loans extended to Risk Groups and the Bank’s Risk
Group, including the Bank; loans in high amounts and limitations regarding the shares in participations are monitored according to the limits determined in connection with the size of
the shareholders’ equity.
Credit risk limits of customers are determined depending on the financial situation and loan requirements of the borrowers, in strict compliance with the relevant banking legislation,
within the framework of loan authorization limits of Branches, Regional Offices, Loan Divisions, the Deputy Chief Executives responsible for loans, the CEO, the Credit Committee and
Board of Directors. These limits may be changed as may be deemed necessary by the Bank. Moreover, all commercial credit limits are revised periodically, provided that each period
does not exceed a year. Furthermore, the borrowers and borrower groups forming a large proportion of the overall placement are subject to risk limits in order to provide further
minimization of potential risk.
The geographical distribution of borrowers is consistent with the concentration of industrial and commercial activities in Turkey.
The distribution of borrowers by sector is monitored closely for each period and sectoral risk limits have been determined to prevent concentration of risk in sectoral sense.