COMMITTEES OF TÜRK EKONOMİ BANKASI A.Ş.

Information on Participation of Board Members and Committee Members into Respective Meetings:

As of 31.12.2018 the Board of Directors have accepted 192 resolutions. The Board Members and Committee Members have participated into respective meetings at sufficient levels.

SENIOR EXECUTIVE COMMITTEE

Monitoring and surveillance of TEB and TEB Group’s operational performance on behalf of TEB’s Board of Directors and in accordance with its directions.

CREDIT COMMITTEE

The Credit Committee is responsible to evaluate and approve loans within its authorization limits.

RISK COMMITTEE

Responsibilities of the Committee: To audit and assess risk policies

AUDIT COMMITTEE

Responsibilities of the Committee:

On behalf of the Board of Directors to supervise the efficiency and adequacy of the Bank’s internal systems,

• To supervise compliance with the provisions hereof concerning internal control and with the internal policies and implementation procedures approved by the Board of Directors and to make proposals to the Board of Directors in relation to measures which it is considered necessary to take,
• Together with the top-level management and the independent auditors, to evaluate the results of independent audit, the annual and quarterly financial statements and related documents and the independent audit report,
• To evaluate the independence of the rating institutions, the independent audit institutions, including those which carry out audits of information systems and the valuation institutions with which the Bank will sign contracts and of their presidents, directors, auditors, managers and employees, in their activities related with the Bank and the sufficiency of the resources that are allocated.

SELECTION AND COMPENSATION COMMITTEE

Responsibilities of the Committee:

• The BRSA’s Regulation Amending the Regulation on the Banks’ Corporate Governance Principles published in the Official Gazette issue 27959 dated 9 June 2011 obligates establishing a compensation policy that is aligned with the scope and structure of the Bank activities, its strategies, long-term goals and risk management structures, that prevents taking excessive risks and that will contribute to effective risk management.
• Determination, monitoring and supervision of remuneration implementations (including salaries, performance bonuses, premiums, awards and fringe benefits).
• Annual submission to the Board of Directors the proposals with respect to the evaluation of remuneration policy and implementations under the risk management.
• Determination of the criteria for the payments of performance bonuses to the employees based on their performances and announcement of such criteria to the employees and regular review of such criteria according to the determined standards and special duty responsibilities.
• Identification and approval of organizational structure, norms, job description, authorization and delegation for Group Director and above titles.

COMPLIANCE COMMITTEE

Responsibilities of the Committee:

• To supervise of compliance policies and practices.
• To monitor the changes in legislation.

CORPORATE GOVERNANCE COMMITTEE

Responsibilities of the Committee:

• To oversee compliance with corporate governance principles, undertake improvement efforts in this area and submit proposals to the Board of Directors.

ASSETS AND LIABILITIES COMMITTEE

Responsibilities of the Committee:

• Regarding TEB Group’s Financial Markets activities; evaluation of industry developments and expectations, determination of strategies, evaluation of markets and the strategies to be adopted and the comparison of risk sizes to be taken,
• To review of financial indicator reports,
• To discuss expectations and developments in the domestic and international markets,
• To review of the general presentation of marketing groups,
• To review of ALM’s presentation in terms of deposits and credit structure,
• To examine the funding cost and spread improvement for business segments,
• Evaluation of analysis of the Bank’s weekly balance-sheet, income and expense, profit and loss statement.

NEW PRODUCT COMMITTEE

Responsibilities of the Committee:

• Within the scope of the Regulation of New Product, Activity and Organization to make decisions about products, activities and organizations which are defined as “newly”.

MARKET AND LIQUIDITY RISK COMMITTEE

Responsibilities of the Committee:

• To monitor market risks and derivative risks,
• To review market and customer derivative risk policies and submit to the Board of Directors,
• To examine stress scenarios and if necessary to make proposal to the Board of Directors for amendment,
• To review market risk limits and recommend to Board of Directors,
• Discussion of necessary topics by Financial Markets, Asset and Liability Management / Treasury, Financial Affairs and Group Risk Management,
• To monitor the liquidity of the Bank; to analyze and follow-up borrowing capacity and other possible funding sources in order to avoid any default risk,
• To analyze and monitor the interest rate exposure of the Bank,
• To review the limits regarding both interest and liquidity risks and recommend to Board of Directors,
• To prepare guidelines and policies for interest rate and liquidity risks and recommend to Risk Policies Committee,
• Recommendation of interest, liquidity, market and counterparty credit risk measurement methods to the Risk Policy Committee.