Convenience translation into english

Total Interest Sensitivity Gap	(4,428,354)	848,330	2,165,371	3,358,180	5,641,713	(7,530,836)
54,404

(*) Receivable and payable amounts related to “money market” transactions are included in “Due From Banks and Other Financial Institutions” item under assets and “Bank Deposits” item under liabilities respectively.

(**) This balance represents the interest rate sensitivity of net amount of receivables and payables from derivative financial instruments which are presented under off-balance sheet commitments.

2- Prior Period 31 December 2003	Up to 1 Month	1 – 3 Months	3 – 6 Months	6 – 12 Months	1 Year and Over	Demand	Total
Assets
Cash (cash in vault, effectives, money in transit, cheques purchased) and balances with the Central Bank of Turkey	-	-	-	-	-	227,578	227,578
Due from banks and other financial institutions(*)	1,157,889	53,118	-	-	-	201,680	1,412,687
Trading securities	582,044	1,117,949	692,042	1,104,747	3,674,571	23	7,171,376
Available-for-sale securities	822,576	973,756	676,357	2,595,009	2,063,529	13,137	7,144,364
Loans	2,751,957	1,305,012	2,506,225	1,485,755	1,235,452	-	9,284,401
Held-to-maturity securities	-	-	686,698	-	-	-	686,698
Other assets	2,221,612	412,175	994,247	613,136	154,145	1,079,369	5,474,684
Total assets	7,536,078	3,862,010	5,555,569	5,798,647	7,127,697	1,521,787	31,401,788
Liabilities
Bank deposits(*)	1,611,809	335,782	15,624	1,501	-	102,502	2,067,218
Other deposits	9,713,134	3,235,068	1,120,678	1,372,119	101,327	3,378,152	18,920,478
Miscellaneous payables	-	-	-	-	-	111,916	111,916
Marketable securities issued	-	-	-	-	-	-	-
Funds borrowed	1,172,300	2,089,799	325,161	294,052	3,801	-	3,885,113
Other liabilities	170,931	34,322	35,239	34,723	155,059	5,986,789	6,417,063
Total liabilities	12,668,174	5,694,971	1,496,702	1,702,395	260,187	9,579,359	31,401,788
Balance Sheet Interest Sensitivity Gap	(5,132,096)	(1,832,961)	4,058,867	4,096,252	6,867,510	(8,057,572)	-
Off-Balance Sheet Interest Sensitivity Gap (**)	47,916	19,200	2,969	76,275	(2)	-	146,358
Total Interest Sensitivity Gap	(5,084,180)	(1,813,761)	4,061,836	4,172,527	6,867,508	(8,057,572)	146,358

(*) Receivable and payable amounts related to “money market” transactions are included in “Due From Banks and Other Financial Institutions” item under assets and “Bank Deposits” item under liabilities respectively.

(**) This balance represents the interest rate sensitivity of net amount of receivables and payables from derivative financial instruments which are presented under off-balance sheet commitments.

2. 
   Effective average interest rates for monetary financial instruments:
   

1- Current Period- 31 March 2004	EURO	USD	Yen	TL
Assets	%	%	%	%
Cash (cash in vault, effectives, money in transit, cheques purchased) and balances with the Central Bank of Turkey	0.97	0.41	-	14.00
Due from banks and other financial institutions	2.00	0.59	-	22.01
Trading securities	9.54	5.50	-	28.30
Available-for-sale securities	9.22	7.44	-	32.53
Loans	4.07	5.50	-	29.14
Held-to-maturity securities	-	10.35	-	-
Liabilities
Bank deposits	2.86	2.50	-	20.33
Other deposits	2.33	2.19	-	19.65
Miscellaneous payables	-	-	-	-
Marketable securities issued	-	-	-	-
Funds borrowed	2.88	2.75	-	21.40

Average interest rates given in the table above are the weighted average rates of the related balance sheet items.

2- Prior Period - 31 December 2003	EURO	USD	Yen	TL
Assets	%	%	%	%
Cash (cash in vault, effectives, money in transit, cheques purchased) and balances with the Central Bank of Turkey	0.80	0.41	-	16.00
Due from banks and other financial institutions	2.24	0.77	-	26.40
Trading securities	9.16	5.73	-	61.24
Available-for-sale securities	9.22	7.50	-	34.61
Loans	4.13	5.82	-	43.20
Held-to-maturity securities	-	10.35	-	-
Liabilities
Bank deposits	2.83	2.56	-	24.49
Other deposits	2.46	2.25	-	22.49
Miscellaneous payables	-	-	-	-
Marketable securities issued	-	-	-	-
Funds borrowed	2.69	2.85	-	25.31

Average interest rates given in the table above are the weighted average rates of the related balance sheet item.

7. 
   LIQUIDITY rısk
   

Liquidity risk arises from mismatching of maturities of assets and liabilities. The Bank balances the maturities of the related assets and liabilities according to specific criterion and keeps the mismatching of maturities under control. A major objective of the Bank’s asset and liability management is to ensure that sufficient liquidity is available to meet the Bank’s commitments to customers and to satisfy the Bank’s own liquidity needs. For this objective, the Bank holds sufficient amount of short term funds. The Executive Risk Committee sets limits on the maturity mismatch of assets and liabilities and these limits are updated as necessary. Liquidity risk is measured and reported on a weekly basis. The Bank also analyses its liquidity risk on a daily and transaction basis, if there are significant market fluctuations.

The most important funding resources of the Bank are the equity capital which is mainly placed in interest earning assets, the diversified and steady deposit base and the long term funds borrowed from international institutions. In spite of a substantial portion of deposits from individuals being short-term, deposits are diversified by number and type, and maturities of great portion of deposits are renewed which indicates that these deposits will provide a long-term and stable source of funding for the Bank.