PASHA BANK ENG 20

PAGE SECTION FOUR INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT I. Information about shareholders’ equity items 132 II. Explanations on credit risk 137 III. Explanations on currency risk 152 IV. Explanations on interest rate risk 154 V. Explanations on equity position risk 157 VI. Explanations on liquidity risk and liquidity coverage ratio 157 VII. Explanations on leverage ratio 165 VIII. Explanations on the risk management 166 IX. Explanations on the presentation of financial assets and liabilities at their fair values 187 X. Explanations on the activities carried out on behalf and account of other persons 189 XI. Explanations on operating segments 189 SECTION FIVE EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS I. Explanations and notes Related to Assets 190 II. Explanations and notes related to liabilities 205 III. Explanations and notes related to off-balance sheet accounts 209 IV. Explanations and notes related to income statement 212 V. Explanations and notes related to statement of changes in the shareholders’ equity 216 VI. Explanations and notes related to statement of cash flows 217 VII. Explanations and notes related to the bank’s risk group 218 VIII. Explanations and notes related to the domestic, foreign, off-shore branches and foreign representatives of the bank 219 SECTION SIX OTHER EXPLANATIONS AND NOTES I. Other explanations related to operations of the bank 220 II. Explanations and notes related to subsequent events 220 SECTION SEVEN EXPLANATIONS ON INDEPENDENT AUDITOR’S REPORT I. Explanations on independent auditor’s report 220 II. Explanations and notes prepared by independent auditor 220 Annual Report 2020 PASHA Bank Year-End Financial Report 107