1. TREASURY MANAGEMENT AND PRODUCTS The Participation Banks Association of Turkey 22/10/2011

2. Treasury Management Managing the liquidity, market and operational risk Ability to meet current and future financial obligations Optimizing the cash resources Pricing of treasury products Sales of the products

3. Treasury Units Money Market FX Dealing Precious Metals Product Development TMU

4. FX Dealing Dealers to manage the FX position FX deals for hedging purposes “Square position” strategy No proprietary trading Pricing to the customers, the branches and the institutions

5. Unilateral Wa’d (FX Forward) A feature attached to a contract Unilateral promise made by one party to another, binding on the party that makes the promise. For example, an importer who has foreign exchange transaction exposure in terms of payment of imports in foreign currency upon delivery of goods might hedge the risk of appreciation of foreign currency by undertaking a promise to buy the foreign currency in the future that matches the real exposure to currency risk of import transaction upon delivery.

6. Unilateral Wa’d (FX Forward)

7. Money Market & ALM Balance Sheet Management Maturity Mismatches Capital Adequacy Ratio Liquidity Ratios

8. Commodity Murabaha

9. Alternative to Swaps

10. Wakala Wakala is an agency contract, which usually includes in its terms a fee for the expertise of the agent. The deposit placing/investor  Muwakkil. The agent  Wakeel Wakeel notifies the expected profit to Muwakkil. Any profit exceeding the expected profit is retained by the Wakeel.

11. Key Issues in Liquidity Management

12. PRECIOUS METALS Gold, silver and platinum spot transactions for hedging. Arbitrage between the domestic and foreign markets.

13. Gold Current Account Customers can buy/sell gold like any other foreign currencies as they open an account.

14. Arbitrage To take advantage of price differences between Turkish and foreign markets. Domestic Price> Foreign Price Domestic Price Foreign Price Time Price Domestic Price> Foreign Price Foreign Prices> Domestic Price ABC

15. Gold Plus- ETF GOLD PLUS is Turkey’s first interest free Exchange-Traded Fund in Gold GOLD PLUS, started to be traded in the ISE on the 2nd of August, 2010.

16. Gold Plus- ETF Gold bars belonging to the fund are physically kept in vault of the Istanbul Gold Exchange (there is no storage cost). Stock exchange investors can easily invest in gold. No requirement of being one of KT customers. Investor can give the shares and take the gold from the fund (at a cost).

17. Physical Gold Trading KT, is Turkey’s most liquid institution in gold, being able to meet the physical gold demand of the market. KT, has managed to be the top 3rd member in the Istanbul Gold Exchange with its volume of gold trades in 2010 and 2011. We are very closely competing with the top 2nd member. KT’s trades at IAR are intensed only if remarkable price arbitrage available among markets. Link for bulletins: http://www.iab.gov.tr/bulletins.asphttp://www.iab.gov.tr/bulletins.asp

18. LBMA Associateship, a remarkable milestone for Kuveyt Turk’s role in Bullion Banking Kuveyt Turk has been approved by the LBMA as one of its “Associates” this year.

19. Bank Asya and Albaraka stock prices

20. Enes KAYA Treasury Supervisor FX and Money Market Thank you for giving me your valuable time…