What is the capital adequacy ratio (CAR) of the bank?
Yapı Kredi’s consolidated CAR is 16.0%, bank-only CAR is 16.9% as of 9M10. • Please comment on the future outlook and trends in the Turkish banking sector The Turkish banking sector is among the least affected banking systems in the world by the global crisis. Turkish banks are not exposed to the derivative products based on mortgages that created the foundations of the global financial crisis. High liquidity, lower leverage, very limited currency risk, sound asset structure, solid capital adequacy and risk management as well as the importance given to internal control and corporate governance are the main factors increasing the resilience of the Turkish banking system to the global crisis. Small and medium sized enterprises (SME) segment is and will continue be an important area of competition. Banks will compete to find creditworthy SME’s that were “under banked” in previous years. This will increase the importance of risk management and credit scoring systems. Efficiency increasing
