CORPORATE BANKİNG PRODUCTS Ömer KARAKUŞ / Group Manager Mehmed Tahir KAPLAN / Manager CORPORATE BANKİNG PRODUCTS Ömer KARAKUŞ / Group Manager Mehmed Tahir KAPLAN / Manager ISTANBUL, OCTOBER 2011

Non-cash Loans Cash Loans →Murabaha → Leasing → Profit-lost sharing (musharaka) → Letter of guarentees → Letter of credits →Acceptences and othe guarentees KURUMSAL VE TİCARİ BANKACILIK GRUBU

Other Banking Services Foreign Trade Services Cash menagment (deposits, cheques,…) FX and Treasury products. KURUMSAL VE TİCARİ BANKACILIK GRUBU

 Corporate Financial Support – MURABAHA  Leasing – IJARA  Profit-Lost Partnership – MUSHARAKA-MUDARABE  Loans without profits. – KARD AL HASEN BASİC FUND UTILIZATION TECHNIQUES KURUMSAL VE TİCARİ BANKACILIK GRUBU

Murabaha  Cost-plus financing  3 parts: Bank, seller, customer  Banks buys a good and sells to customer by adding profit  Repayments to bank made over time.  Title of good transferred to customer during transaction.  %90 share in total cash risk. KURUMSAL VE TİCARİ BANKACILIK GRUBU

good Murabaha Customer Kuveyt Türk 1 – buying dealling (Pro-forma invoice 2 – Aplication to bank 4 – Transfer of good to customer-invoicing 6 – repayment by customer over time Seller 5 – Bank sends money to seller KURUMSAL VE TİCARİ BANKACILIK GRUBU 3 – Bank order to seller

IN A MURABAHA a tangible asset must exist asset must be islamically compatible the cost of good must be known by customer at the beginning of the transaction, the price, the profit rate and the term of repayment must be agreed between bank and customer. After sales, the profit rate can not be changed. Bank may grant special autharization to customer (wakale) for the purchase of goods. IN A MURABAHA a tangible asset must exist asset must be islamically compatible the cost of good must be known by customer at the beginning of the transaction, the price, the profit rate and the term of repayment must be agreed between bank and customer. After sales, the profit rate can not be changed. Bank may grant special autharization to customer (wakale) for the purchase of goods.

(Leasing) – Ijara  Leasing of a good subject to amortization to customer  3 parts ( Lessor, seller, bank)  Title of good belong to the bank during the rental period. KURUMSAL VE TİCARİ BANKACILIK GRUBU

Machinery Kuveyt Turk 1 – Selling deal(Pro-form invoice 2 – Leasing Agreement 4 – Transfer of machinery 6– Repayment Seller 3 – Seller invoice bank 5 – Bank buys machinery Customer KURUMSAL VE TİCARİ BANKACILIK GRUBU 7 – Transfer of title (Leasing) – Ijara

IN A LEASİNG An investment good subject to amortization Rent period is min. 4 years ( except some goods) by law. At the end of rent period, title of good transfered to customer. Tax advanteges. Rental period and rent amount can be changed. IN A LEASİNG An investment good subject to amortization Rent period is min. 4 years ( except some goods) by law. At the end of rent period, title of good transfered to customer. Tax advanteges. Rental period and rent amount can be changed.

Musharaka  Business partnership between two or more parts  Parts may contribute both cash and labor, know-how  Profit to be shared on agreed terms and loss to be shared according to shares  Duration of partnership to be determined by the contract.  Hard to implement in practice. KURUMSAL VE TİCARİ BANKACILIK GRUBU

Mudaraba  One part invest cash(investor, rabb-ül mal), other part labor, know-how( mudarib)  The mudarib is responsible for doing business and keeping records.  Profit to be shared among parts as agreed in the contract.  Losts are to be born by rabb-ül mal  ın Turkey, used as method for collecting funds. KURUMSAL VE TİCARİ BANKACILIK GRUBU

Kard Al Hasen (Good Loan)  For profitable custemers, short term  No charge of profit or fee  Used for tax payments, cheque payment, salary payment. Etc. KURUMSAL VE TİCARİ BANKACILIK GRUBU

THANK YOU… KURUMSAL VE TİCARİ BANKACILIK GRUBU