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ARAP TÜRK BANKASI A.Ş.
NOTES TO UNCONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
V. INFORMATION ON FOREIGN CURRENCY EXCHANGE RATE RISK
Whether the Bank is exposed to foreign exchange risk, whether the effects of this situation are estimated, and whether the board
of directors of the Bank sets limits for positions that are monitored daily
The Bank complies with net general position-shareholder’s equity limits. The Bank has the possibility to borrow a significant amount of
foreign currency.
Within the context of the market risk management work of the Risk Management Department, the Bank’s Exchange rate risk is
calculated and analyzed taking different dimensions of the issue in consideration. The Exchange rate risk is measured according to
market risk calculated using the Standard Method and is included in the capital adequacy ratio. For testing effects of the unexpected
exchange rate fluctuations on the Bank monthly basis stress test analysis are done. In addition, by classifying the changes in risk factors
different scenario analysis are done based on different exchange rate expectations. The sensitivity of assets, liabilities and off-balance
sheets against exchange rate are measured by an analysis on a monthly basis.
The magnitude of hedging foreign currency debt instruments and net foreign currency investments by using hedging derivatives
The Bank does not have any financial derivatives used for hedging.
Foreign exchange risk management policy
Transactions are being hedged according to the Central Bank of Turkey’s basket of currencies instantly. Managable and measurable
risks are taken in the scope of the regulatory limits.
Foreign exchange buying rates of the last five business days before the balance sheet date as publicly announced by the
Bank, are as follows
Date
USD Dollars
Euro
24 December 2013
2.0877 TL
2.8573 TL
25 December 2013
2.0812 TL
2.8466 TL
26 December 2013
2.0710 TL
2.8353 TL
27 December 2013
2.0957 TL
2.8693 TL
30 December 2013
2.1604 TL
2.9844 TL
31 December 2013
2.1343 TL
2.9365 TL
The basic arithmetical average of the bank’s foreign exchange bid rate for the last thirty days:
The basic arithmetical average of the Bank’s foreign exchange bid rate for December 2013 TL 2.0630 is for USD , TL 2.8266 for
EURO.