Credit Committee

Purpose

As per the powers vested by the Board of Directors, the Credit Committee passes resolutions on requests for limit allocation, renewal, increase and/or collateral changes amounting up to 10% of the shareholders’ equity provided that the tasks, powers and responsibilities remain within the restrictions defined in the Banking Law and related regulations. (Decisions on credit allocations that exceed 10% of the shareholders’ equity shall be taken by the Board).

Composition of the Committee

The Committee consists of the General Manager or Deputy General Manager with at least two members elected by the Board of Directors from among the members that meet the conditions required for the General Manager (except for the term) to fulfill the assigned duties regarding credits. Two reserve members from among the Board Members meeting the conditions required (except for the term) for the General Manager have been elected to serve as a substitute for a Credit Committee member who cannot participate in any meeting.

Functions of the Committee

Based on the powers delegated by the Board of Directors, the Credit Committee is authorized to allocate credit lines within the framework of the methods/principles defined by the Banking Regulation and Supervision Agency and to conclude the credit resolutions within delegated limits. In this respect the Committee;

• Decides on branches’ credit limits and conditions for extensions,
• Evaluates and decides on the requests for limit allocations and increases that exceed the branches’ delegated powers,
• Resolves on credit limits that are to be decreased or canceled,
• Monitors the general credit policies of the Bank,
• Determines the terms and conditions of credit extensions,
• Decides on converting credit lines of clients into other modes of credit facility.

Working Principles of the Committee

The Credit Committee convenes with the participation of all members. The Credit Committee’s decisions given unanimously are implemented directly and decisions given by the majority are implemented after the approval of the Board of Directors.

The committee agenda is determined by the General Manager. The written suggestion of the General Manager is asked for in limit increases made by the Credit Committee. For proposals regarding credits for which financial tables have to be required, it is essential that the financial analysis and intelligence reports of credit requestors should be attached

The activities of the Credit Committee are subject to audit by the Board of Directors. Each Board Member is authorized to ask for all kinds of information from the Credit Committee about the Committee’s activities and to conduct all kinds of control he/she finds necessary.

The decisions of the Credit Committee are recorded in the minute book. The Credit Committee minute book is kept according to the procedures and principles that the Board minute book is subject to.