INTRODUCTION
ACTIVITIES
CORPORATE GOVERNANCE
FINANCIAL INFORMATION AND RISK MANAGEMENT
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
231
İŞBANK
ANNUAL REPORT 2012
16. Miscellaneous Information According to Type of Counterparty of Major Sectors
Significant Sectors/Counterparty
(1)
Loans
Impaired
Non-performing
(2)
Value Adjustments
(3)
Provisions
(4)
Agricultural
65,228
13,682
467
54,524
Farming and Raising Livestock
55,781
12,162
359
47,339
Forestry
6,717
865
66
5,063
Fishing
2,730
655
42
2,122
Industry
445,472
139,459
6,574
355,658
Mining
23,952
5,896
201
14,199
Production
417,805
131,137
6,295
338,345
Electricity, gas, and water
3,715
2,426
78
3,114
Construction
341,862
58,274
2,216
280,440
Services
643,314
227,233
12,869
495,886
Wholesale and Retail Trade
398,820
163,496
7,024
305,566
Hotel, Food and Beverage
Services
33,093
11,411
947
27,048
Transportation and
Telecommunication
85,291
21,615
2,344
57,429
Financial Institutions
33,765
406
62
32,722
Real Estate and Renting Services
31,399
8,213
648
26,206
Self-Employment Services
33,719
10,161
696
25,128
Education Services
4,986
1,690
108
2,731
Health and Social Services
22,241
10,241
1,040
19,056
Other
773,298
710,768
45,282
537,138
Total
2,269,174
1,149,416
67,408
1,723,646
(1)
Amount includes finance lease and factoring receivables.
(2)
Refers to loans overdue up to 90 days. Related items included in the commercial installment loans and installment consumer loans are given only in the overdue amounts, the payment of these
loans outstanding principal amounts of TL 624,257 and TL 844,584 respectively.
(3)
Refers to the general provisions for non-performing loans..
(4)
Refers to specific provision for impaired loans.
17. Information on Value Adjustments and Change in Credit Provisions
Beginning Balance
Provisions
Reversal of
Provisions
Other Value
Adjustments
(1)
Ending Balance
Specific Provisions
2,109,419
612,325
(1,066,350)
(616)
1,654,778
General Provisions
1,315,935
394,723
(5,483)
(22)
1,705,153
(1)
Stating foreign exchange gains and losses.
III. Explanations on Consolidated Market Risk:
1. Explanations on Consolidated Market Risk:
The market risk carried by the Group is measured by two separate methods known respectively as the Standard Method and the Value at
Risk (VAR) Method in accordance with the local regulations adopted from internationally accepted practices. In this context, interest rate risk
emerges as the most important component of the market risk.
The consolidated market risk measurements are carried out on a quarterly basis, using the Standard Method. The results are accounted in
the legal reporting and evaluated with the top management.
The VAR Method is another alternative for the Standard Method in measuring and monitoring market risk carried by the Parent Bank. This
model is used to measure the market risk on a daily basis in terms of interest rate risk, currency risk and equity share risk and is a part of the
Parent Bank’s daily internal reporting. Further retrospective testing (back-testing) is carried out on a daily basis to determine the reliability
of the daily risk calculation by the VAR model, which is used to estimate the maximum possible loss for the following day.
Scenario analyses which support the VAR method used to measure the losses that may occur in the ordinary market conditions are
practiced, and the possible impacts of scenarios that are developed based on the future predictions and the past crises, on the value of the
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