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
241
İŞBANK
ANNUAL REPORT 2012
c.
Unrealized gains and losses on investment in stocks, revaluation increases with the amounts of main and additive capital:
Portfolio
Realized Gains/
losses During the
period
Revaluation Increases
Unrealized Gains
Total
Including to
the Capital
Contribution
Total
Including in to
the main capital
Including to
the Capital
Contribution
Private Equity Investments
Shares Traded on a Stock Exchange
1,689,476
760,264
Other Stocks
Total
1,689,476
760,264
VIII. Explanations on Consolidated Liquidity Risk
Liquidity risk may arise 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 Parent Bank’s main 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 Parent Bank’s wide network of branches and steady core deposit base are its most important
safeguards of the supply of funds. The Parent 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 Group 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 Parent Bank, are used effectively to manage the liquidity risk.
Evaluated within the framework of the Parent 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.
As per the Communiqué on “Measurement and Assessment of the Adequacy of Banks’ Liquidity”, the liquidity ratios that are measured for
terms of 7 and 31 days should not be less than 80% and 100%, respectively. Foreign currency liquidity adequacy ratio means the ratio of
foreign currency assets to foreign currency liabilities and the total liquidity adequacy ratio mean the ratio of total assets to total liabilities.
The highest, lowest and average liquidity adequacy ratios of the Parent Bank for the year ended 2012 with their prior year comparatives are
given below.
Current Period
First Maturity Bracket (Weekly)
Second Maturity Bracket (Monthly)
FC
FC + TL
FC
FC + TL
Average (%)
150.28
150.51
97.72
109.76
Highest (%)
172.36
175.69
113.42
125.15
Lowest (%)
125.96
119.19
88.25
103.75
Prior Period
First Maturity Bracket (Weekly)
Second Maturity Bracket (Monthly)
FC
FC + TL
FC
FC + TL
Average (%)
153.51
179.24
97.51
130.64
Highest (%)
213.52
271.05
116.48
170.87
Lowest (%)
115.11
122.44
82.60
107.70
1...,233,234,235,236,237,238,239,240,241,242 244,245,246,247,248,249,250,251,252,253,...300