PASHA_BANK_ANNUAL REPORT 2022

INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) f. Issues to be announced to public related to securitisation positions The Bank does not have transactions related with securitizations, the related table has not been prepared. g. Explanations on market risk The risk principles, policies and risk limits related to the management of market risk are approved by the Board of Directors and reviewed on a regular basis. The Bank’s Senior Management performs day to day management of the market risk in accordance with the limits assigned by the Board of Directors. The Bank is exposed to market risk as a result of fluctuations in foreign exchange rates, interest rates, and market prices of stocks. Exchange rate risk and interest rate risk are evaluated as the two most important components of market risk. The Bank engages in derivative transactions for hedge purposes when found necessary. Market risk is calculated by the “standard method”. For legal reporting, standard method is utilised. The following table indicates the details of the market risk calculation, in accordance with the Market Risk Calculation principles pursuant to the Third Section of the “Regulation on Measurement and Assessment of Capital Adequacy of Banks” published in the Official Gazette no. 29511 on 23 October 2015. Current Period Prior Period RWA RWA Outright products 1 Interest rate risk (general and specific) 6,550 - 2 Equity risk (general and specific) - - 3 Foreign exchange risk 94,938 70,000 4 Commodity risk - - Options 5 Simplified approach - - 6 Delta-plus method - - 7 Scenario approach - - 8 Securitisation - - Total 101,488 70,000 204 PASHA Bank 2022 Annual Report Notes to Unconsolidated Financial Statements at 31 December 2022 Pasha Yatırım Bankası A.Ş. (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Convenience translation of publicly announced unconsolidated financial statements originally issued in turkish, see note I of section three