Questions Prepared By Students
Turkish Banking Act 4389 (modified by act no 4491) article 14-2 states: "If the Banking Regulation and Auditing Institution (BRAI), in its sole discreation determines that if the assets of a bank are insufficient or about to become insufficient to cover its its obligations in terms of maturity or the bank does not comply with the liquidity regulations, the BRAI may ask the bank to remedy this failure in accordance with a plan of action approved by itself and may also, for the purpose of strengthening the liquidity, grant an appropriate amount of time to the bank and require the bank to take two important actions. Explain what these two important actions are.
Q(2) Turkish Banking Law imposes certain limitations on banks related to the loans a bank may give to its customers. How many different types of limitations do you know that exists in the Banking Law for "Loan Management"? Explain each limitation in detail.
ÖZDEMÝR, Fatma Q(3)
Given Bank A with the following data, discuss the legality of the bank's loan practices in each case according to the Banking Law:
1) Shareholders Equity= 200TL
2) Total Assets =2800TL,
3) Total Liabilities = 2600TL
a) Bank A gives a loan of 40 TL to Company C.
b) Bank A gives a loan of 30TL to 55 different companies each.
c) Bank A gives a loan of 40TL to Company B in which the son of the general manager of Bank A holds 30% interest.
ALPMAN, Arda Q(4) Discuss the membership regulations of the Banks Association of Turkey and list the aims of this institution as defined in the Turkish Banking Act 4389.
Explain the conditions necessary to become eligible for a general manager and assistant general manager positions in a Turkish bank.
GAIBADOULLINE, Rafael Q(6)
According to Turkish Banking Act 4389 Article 14-3, if the Banking Regulating and Auditing Board (BDDK)determines the existance of any of the 4 conditions stated in this article, it can decide to transfer the management and control of such a bank to the Saving Deposits Insurance Fund (TMSF). Expalin these 4 conditions.
GÜMÜÞ, Ýnci Q(7)
The Turkish Banking Law imposes certain restrictions on Banks for granting loans and acquaring share certificates.
a) Banks can not in any manner whatsoever extend credits (loans)to which types of customers?
b) Banks can not in any manner whatsoever purchase the share sertificates of (make equity participation in) which types of companies?
GÜNAR, Serpil Q(8) The Turkish Saving Deposits Insurance Fund (TMSF) under normal circumstances raises its funds from 6 major different sources (Article 15). Under extraordinary situations it can also raise additional funds by special fund raising activities allowed by the Law. List the 6 major sources of funds of the TMSF and explain the special fund raising opportunities the TMSF may use under extraordinary circumstances.
ERDEK, Ercan Q(9)
The management and audit of Demirbank was transferred to the “Savings Deposit Insurance Fund” (TMSF) on December 06, 2000 as per the Banking Law article 14 paragraph 3.
The “TMSF” fund, by the authority given under the Banking Law article 14 paragraph 5 ab), became the only shareholder of the Bank by compensating the “Accumulated Deficit/Losses” of the Bank in return for its shares.
Considering the “Camel Risks”, “Risk Management” and “Asset and Liability Management” techniques, answer the following questions:
a) What happened in the financial markets which triggered the problems of
b) Why was this Bank negatively affected? How did this market reaction affect the “Asset and Liability” structure of the Bank? What impact this had on the “Balance Sheet”, “Income Statement” and “Contingent Liabilities and Commitments” of the Bank?
c) Based on the experience lived, prepare a list of “To Do’s and Not To Do’s” to the other Banks in order not to experience a similar problem. In your answer try to concentrate on “Risk Management” and “Asset and Liability Management” concepts.
Q(10) Explain the concept of "Transparency" in the banking system, its benefits on safe and sound banking practices and its potential drawbacks. EKÞÝOÐLU, Zerrin
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