C.

expected future losses= passed due loans/TL and leases:

Passed Due loans: 2010 2011 2012

loans and advances to customers 991,333 2,105,277 213703

2

loans to banks and financial institutions 0 11,686 10,291

loans and advances to related parties 41055 53080 41901

Total 1,032,388 2,170,043 218922

4

   

Past due loans/ total loans and leases 0.484 0.491 0.498

As we can see in this table, the expected future losses ratio is increasing to be
at its highest (0.498) in 2012, this is due to the increase in past due loans, this
increase is due to the loans and advances to customers and in the loans and
advances to related parties in the loans and advances to customers .This is a
negative point for the bank because it increases the exposure to credit risk.

1) Liquidity risk:
A. Cash and due/TA:

Year 2010 2011 2012

cash and balances with the central 1,089,549 2,040,254 3,526,700
bank
Total assets 7,662,550 15,760,551 16,926,425
cash and Due/TA 0.14 0.13 0.21

In the previous table we can observe that this ratio was stable in the years
2010 and 2011, but increases by a significant amount in 2012 to reach 0.21,
which reflects a high liquidity for the bank, he is not exposed much to liquidity
risk( low liquidity risk) and this is due to the fact that cash and balances with
the central bank is increasing over the years (the bank has enough cash to
meet depositor’s withdrawal or other cash needs).

B. Liquid assets/TA:

Liquid assets/TA 31.68% 33.88% 65.82

%

This ratio is increasing year by year to reach a maximum of 65.82% in year

2012, Low liquidity risk, this is due to the increase in short-term securities
and an increase in cash and due (from previous table).