INFORMATION ON TRANSACTIONS CONDUCTED WITH RELATED PARTIES

The Bank is involved in various transactions with its affiliated group (related-parties) and these transactions are carried out for commercial purposes and at market prices. Loan transactions with related-parties and their share in the Bank’s total credit risk as of 31 December 2012 and 31 December 2011 were as follows:

Detailed information about the risk group to which TEB is included has been prepared in accordance with the “Communiqué on Financial Statements and Related Explanations and Footnotes Announced to the Public by Banks” and published in Section 4, Paragraph b of the “Annual Report" and was also included in the financial statements as of 31 December 2012 and Section VII, Article 1 of the Independent Audit Report.

REMARKS ON PRIVATE AUDIT AND THE PUBLIC AUDIT

Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. has been the external audit company for TEB A.Ş. and its subsidiaries for 2012. On the other hand, routine audits have been carried out by Banking Regulation and Supervison Agency (BRSA) and Turkish Republic Central Bank audit. 

INFORMATION ABOUT ESTABLISHING RISK COMMITTEE

Duties and responsibilities defined by Board of Directors concerning “Early Detection of Risk Committee” are as follows:

1. early detection of the risk that may endanger the presence, development and sustainability of the Company, application of the necessary measures and remedies related to the identified risks and risk management,
2. evaluation of circumstances and, if any, pointing out the dangers, submission of the “Report on Early Detection and Management of Risk” to the Board of Directors to be prepared in every two months for the purpose of outlining the necessary measures.

Therefore, it has been unanimously resolved that the Audit Committee existing within our Bank shall continue to carry on its duties which also include duties, responsibilities and authorities of the “Early Risk Detection Committee” mentioned in Article 378 of the Turkish Commercial Code.