TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
244
İŞBANK
ANNUAL REPORT 2012
The following table shows the remaining maturities of derivative financial assets and liabilities of the Group.
Current Period
Up to 1 Month
1-3 Months
3-12 Months
1-5 Years 5 Years and Over
Total
Forwards Contracts- Buy
4,042,852
1,153,656
1,722,416
167,416
7,086,340
Forwards Contracts- Sell
4,020,500
1,149,326
1,721,263
166,962
7,058,051
Swaps Contracts -Buy
6,255,817
1,486,052
5,680,018
8,301,550
1,919,583
23,643,020
Swaps Contracts -Sell
5,844,119
1,475,271
5,450,278
8,253,098
1,919,537
22,942,303
Futures Transactions-Buy
19,326
19,326
Futures Transactions-Sell
17,800
17,800
Options-Call
1,205,185
597,335
2,173,464
1,089,662
444,032
5,509,678
Options-Put
1,200,462
594,987
2,161,966
1,089,663
444,032
5,491,110
Other
381,103
40,327
40,832
462,262
Total
22,950,038
6,534,080 18,950,237 19,068,351
4,727,184 72,229,890
Prior Period
Up to 1 Month
1-3 Months
3-12 Months
1-5 Years 5 Years and Over
Total
Forwards Contracts- Buy
2,018,832
2,107,575
4,477,234
387,581
8,991,222
Forwards Contracts- Sell
2,052,739
2,098,489
4,447,195
387,295
8,985,718
Swaps Contracts -Buy
5,918,350
964,866
1,555,830 11,902,459
2,473,204 22,814,709
Swaps Contracts -Sell
6,177,476
1,185,799
1,606,300 11,488,587
2,473,204 22,931,366
Futures Transactions-Buy
23,540
23,540
Futures Transactions-Sell
23,215
23,215
Options-Call
1,197,127
417,918
1,566,333
870,795
579,118
4,631,291
Options-Put
1,193,790
417,916
1,566,333
870,795
579,118
4,627,952
Other
286,923
238,106
287,863
7,331
820,223
Total
18,845,237
7,477,424 15,507,088 25,914,843
6,104,644 73,849,236
IX. Explanations on Securitization Positions
None.
X. Explanations on Credit Risk Mitigation Techniques
Activities carried out by the bank that give rise to credit risk and collaterals are in accordance with the provisions of the relevant legislation.
However, effect of credit risk mitigation techniques is not taken into account in the determination of the capital adequacy ratio.
XI. Explanations on Risk Management Objectives and Policies
In addition to banking activities, activities of the entire the group as a whole is exposed to financial and non-financial risks which are
required to be analyzed, monitored and reported within specific risk management principles of the bank and with the perspective of Group
risk management. The risk management process is organized within the framework of risk management and serves the creation of a
common risk culture in corporate level; which brings “good corporate governance” to forefront, business units that undertaken risks and the
independence between the internal audit and surveillance units are established, risk is defined in accordance with international regulations
and in this context measurement, analysis, monitoring, reporting and control functions are carried.
Risk management process and the functions involved in the process is one of the primary responsibilities of the Board of Directors. The Risk
Management Department, which operates under the Board of Directors has been organized as Asset-Liability Management Risk Unit, Credit
Risk and Economic Capital Unit, Operational Risk and Model Verification and Subsidiary Risk Unit.
The Bank’s risk management process is carried out within the framework of risk policies which are set by recommendations of Risk
Management Department and issued by the Board of the Directors and written standards which contains risk policies and implemented by
executive units.
These policies which are entered into force in line with the international practices are general standards which contains; organization and
scope of the risk management function, risk measurement policies, duties and responsibilities of the risk management group, procedures for
determining risk limits, ways to eliminate limit violations and approval and confirmation to be given in a variety of events and situations. The
scope and content of the Parent Bank’s risk management system is given by the main risk types.
Credit risk
Credit risk is defined as the risk of the failure to comply with the requirements or failing to fulfill its obligations partially or totally of the
counter side of the transaction contract with the Parent Bank. The methodology and responsibilities of the credit risk management,
controlling and monitoring and the framework of credit risk limitations specified with the credit risk policy.
The Bank defines measures and manages credit risk of the all products and activities. Board of Directors review the Parent Bank’s credit
risk policies and credit risk strategy on an annual basis as a minimum. Key Management is responsible for the implementation of credit risk
policies which are approved by Board of Directors.
1...,236,237,238,239,240,241,242,243,244,245 247,248,249,250,251,252,253,254,255,256,...300