TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2012
ANNUAL REPORT 2012
VII. Explanations on Equity Shares Risk Arising from Banking Book
Related to the equity investments account practices about the associates and subsidiaries can be seen in the Third Section and the
footnote numbered III.
Balance Sheet Value of Equity Investment, fair value, and for publicly traded, if the market value is different from the fair value
comparison to the market price:
Share Certificate Investments
Stock Investment Group A
Associate and Subsidiaries
Securities Available For Sale
Unrealized gains and losses on investment in stocks, Revaluation increases with the amounts of additives included in the main and capital
Including in to
the main capital
1 Private Equity Investments
2 Shares Traded on a Stock
3 Other Stocks
VIII. Explanations on Liquidity Risk
Liquidity risk may occur as a result of funding long-term assets with short-term resources. Utmost care is taken to maintain the consistency
between the maturities of assets and liabilities; strategies are used to acquire funds over longer terms.
The Bank’s principal source of funding is deposits. While the average maturity of deposits is shorter than the average maturity of assets as a
result of the market conditions, the Bank’s wide network of branches and steady core deposit base are its most important safeguards of the
supply of funds. The Bank also borrows medium and long-term funds from institutions abroad.
In order to meet the liquidity requirements that may arise due to market fluctuations, the Bank analyses TL and FC cash flows projections
to preserve liquid assets. The term structure of TL and FC deposits, their costs and movements in the total amounts are monitored on a
daily basis, also accounting for developments in former periods and expectations for the future. Based on cash flow projections, prices
are differentiated for different maturities and thereby measures are taken to meet liquidity requirements; moreover liquidity that may be
required for extraordinary circumstances is estimated and alternative liquidity sources are determined for possible utilization.
Furthermore, foreign currency and total liquidity adequacy ratios, which are subject to weekly legal reporting and calculated separately for 7
and 31 days following the reporting date, and the liquidity adequacy ratios that are calculated based on the stress scenarios built internally
by the Bank, are used effectively to manage the liquidity risk.
Evaluated within the framework of the Bank’s asset-liability management risk policy, the limits determined related to the liquidity risk
management are monitored by the Risk Committee and to avoid extraordinary situations where a quick action should be taken due to the
unfavorable market conditions, emergency measures and funding plans related to liquidity risk are put into effect.