PASHA BANK ENG 20

PASHA Yatırım Bankası A.Ş. Notes to Unconsolidated Financial Statements at 31 December 2020 (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) EXPLANATIONS ON ACCOUNTING POLICIES (Continued) XXIV. EXPLANATIONS ON RELATED PARTIES Parties defined in Article 49 of the Banking Law No.5411, Bank’s senior management and Board Members are deemed as related parties. XXV. EXPLANATIONS ON CASH AND CASH EQUIVALENTS For the purposes of the preparation of statement of cash flows, “Cash” includes cash, effectives, and cash in transit, purchased cheques and demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market placements and time deposits at banks with original maturity periods of less than three months. XXVI. EXPLANATIONS ON SEGMENT REPORTING Information on operational fields which are determined in accordance with the Bank’s organizational and internal reporting structure and the requirements of “Turkish Financial Reporting Standards on Segment Reporting” (“TFRS 8”) is disclosed in Section Four. XXVII. RECLASSIFICATIONS In order to be consistent with the presentation of current period financial statements, there are certain reclassifications. XXVIII. EXPLANATIONS ON OTHER MATTERS None. SECTION FOUR INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT I. INFORMATION ABOUT SHAREHOLDERS’ EQUITY ITEMS Equity capital amount and capital adequacy standard ratio is calculated in accordance with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and “Regulation on Equities of Banks”. The current period equity amount of the Bank is TL 584,574 (31 December 2019 -TL 548,480) while its capital adequacy standard ratio is 26.34% (31 December 2019 - 32.00%) as of 31 December 2020. The capital adequacy ratio of the Bank is far beyond the minimum rate determined by the related legislation. 132 Annual Report 2020 PASHA Bank Year-End Financial Report