PASHA_BANK ANNUAL REPORT 2021

163 Annual Report 2021 PASHA Bank (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PASHA Yatırım Bank A.Ş. Notes to Unconsolidated Financial Statements At 31 December 2021 INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) IV. EXPLANATIONS ON INTEREST RATE RISK Interest rate risk is the risk that expresses the effects of fluctuations in the market interest rates on the value increase/decrease of the Bank’s interest rate sensitive assets and liabilities. The interest rate sensitivity of Assets, Liabilities and Off-balance sheet items is carefully followed up by the treasury department of the Bank. Assets and liabilities which are sensitive to interest are managed in such a way that minimizes the interest risk. The interest rate risk of the banking items is measured legally in accordance with the “Regulation on Measurement and Assessment of Standard Shock Method on the interest rate risk arising from banking accounts”, and this legal limit is monitored and reported monthly, based on this measurement. a. Interest rate sensitivity of assets, liabilities and off-balance sheet items based on repricing dates Current Period Up to 1 Month 1-3 Months 3-12 Months 1-5 Year 5 Year and over Non- Interest Bearing (1) Total Assets Cash and Cash Equivalents (Cash in vault, effectiveness, money in transfer and cheques purchased) and Balances with the CB of Turkey 282,666 - - - - 744 283,410 Due from Banks 66,646 - - - - 143,142 209,788 Financial Assets at Fair Value Through Profit/Loss (7) 13,604 - - - - 20,956 34,560 Money Market Placements - - - - - - - Financial assets at fair value through other comprehensive income 3,307 640 1,101 37,978 - 7,659 50,685 Loans (2) 609,771 363,660 583,371 856,310 9,340 (70,933) 2,351,519 Financial assets measured at amortised cost 1,155 28,994 183,060 147,894 - (4,224) 356,879 Other Assets - - - - - 275,712 275,712 Total Assets 977,149 393,294 767,532 1,042,182 9,340 373,056 3,562,553 Liabilities Bank Deposits - - - - - - - Other Deposits - - - - - - - Funds From Interbank Money Market 194,227 5,845 5,451 - - - 205,523 Miscellaneous Payables (5) 23,651 601 - - - 49,985 74,237 Marketable Securities Issued 66,372 1,503 773,082 381,502 - - 1,222,459 Funds Borrowed From Other Financial Institutions 257,743 266,133 181,242 670,698 - 236 1,376,052 Other Liabilities (3),(4) 11,361 - - - - 672,921 684,282 Total Liabilities 553,354 274,082 959,775 1,052,200 - 723,142 3,562,553 Balance Sheet Long Position 423,795 119,212 - - 9,340 - 552,347 Balance Sheet Short Position - - (192,243) (10,018) - (350,086) (552,347) Off-balance Sheet Long Position (6) 145,999 - - - - - 145,999 Off-balance Sheet Short Position (6) (132,709) - - - - - (132,709) Total Position 437,085 119,212 (192,243) (10,018) 9,340 (350,086) 13,290 (1) Allowances for the expected credit losses are included in the non-interest bearing column. (2) Finance lease receivables are included. (3) Shareholders’ equity is presented under other liabilities in the non-interest bearing column. (4) Borrowers’ funds is presented in the other liabilities. (5) Presented in other liabilities at financial statements. (6) Includes asset purchase and sale commitments (7) Includes derivatives financial assets