tasarİm KAPAK ing (Page 2)

A n n u a l
The
chef
R e p o r t
1 9 9 9
kitchen of the
Turkish capital markets
in the
The Kitchen at Topkap› Palace
At Topkap› Palace, built during the reign of Mehmet the Conqueror,
dishes were prepared in a large domed area called “Matbah-›
Amire” (the Kitchen of the Palace). The Royal Kitchen, built during
the reign of the Suleiman the Magnificent, was enlarged to include
a special kitchen just for the making of sweets. After a devastating
fire during the reign of Selim II, the kitchens were rebuilt by Mimar
Sinan, the famous Ottoman architect. Each kitchen was covered by
two domes and consisted of ten divisions. The Sultan’s food was
prepared specifically by a chef called the “Serçini” who was
assisted by 12 master cooks. Approximately 15-20 chefs, 60 cooks
and 200 assistants, all working in rotating shifts, were employed in
the kitchens of the Palace. This figure sometimes increased to more
than 1,000 when the population of the Palace grew to between
5,000 and 10,000.
In the special kitchen for making sweets, the chef worked with a
large team. The meals were brought to the harem, the ladies’
apartments and the Imperial Chancery of State by conscript youths
and assistant cooks, called “tablakar”. The meals of the Sultan were
carried to the big gate of the Palace, known as the “Bab’üs Saade”
and handed to the pages in the Palace, who were employed in the
pantry of the ladies’ apartments.
Documents in Palace archives from approximately the 15th through
the 19th centuries indicate that tools of copper and gold-plated
copper were the most frequently used. Specialized utensils for
cooking and food preparation included: cauldrons, hammered pans
with round bottoms to prepare a special dish called helva, pans
with covers, various food dishes with covers, pans for frying,
peelers and pincers, bowls and ewers, large round metal trays,
coffee sets (including coffee dippers and pots, pans to roast coffee,
metal cup-holders, coffee grinders), copper jugs with handles (used
for hot drinks made from the powdered root of a special plant),
aflure (a sweet dish made of grains, sugar, raisins, nuts, milk, fruit
juice and water), mortar and pestles, and ladles and skimmers ....
T a k a s b a n k
Established in 1988 as a department within
the Istanbul Stock Exchange (ISE),
Takasbank originally dealt with the provision
of settlement services for the securities
traded by the members of the ISE. In
January 1992, responsibility for settlement
and custody was transferred to an
independent company, ‹MKB Takas ve
Saklama A.fi. (ISE Settlement and Custody
Co. Inc.) that was set up as a partnership
between the ISE and its members. This
Company has operated as a sector bank
under the name of Takasbank - ‹MKB Takas
ve Saklama Bankas› A.fi. (Takasbank - ISE
Settlement and Custody Bank, Inc.) since
January 2, 1996. Takasbank, founded as a
partnership from among capital market
participants, has formed a bridge between
money and capital markets. Despite its
relatively short history, it has become one of
the most important institutions within the
financial sector.
A
i n
B r i e f
Complying with the definition of an “Eligible
Foreign Bank” by the Securities and
Exchange Commission (SEC), Takasbank has
also been accredited as an “Approved
Depository” and an “Approved Bank” by the
Securities Futures Authority (SFA) in the UK.
Following a declaration by the Japan
Securities Dealers Association (JSDA) that
the ISE is an appropriate foreign investment
market, both the Japan Securities Clearing
Corporation (JSCC) and the Japan Securities
Depository Center (JSDC) announced that
Takasbank also met their standards.
Takasbank provides short-term cash facilities
to capital market participants through its
Securities Purchasing Loans and Securities
Lending/Borrowing services. The Bank
offers a fast, safe and reliable environment
for banks and brokerage houses for their
cash lending and borrowing transactions in
the Money Market it operates.
professional chef is the one who always stocks a sufficient supply of
ingredients and is ready for any unexpected circumstances
that may arise in order to serve guests quickly and
efficiently.
Hammered cooking pot with large
headed rivets and four handles,
circa 17th century
As the central depository for the Turkish capital markets,
Takasbank safeguards the securities transacted in capital
markets in its vaults while maintaining a vast computer
database relating to these securities. Thus, the Bank is able
to transfer accurate on-line data to investors, brokerage
houses, banks and authorized governmental institutions that
require such data.
By bringing together settlement and custody
functions under one roof, Takasbank has
earned a special place among similar
institutions.
Takasbank is one of two Turkish banks with
the highest recorded EFT transaction volume
for 1999 and ranks among the institutions
paying the highest corporate tax in the
country.
01
F i n a n c i a l
(TL Millions)
H i g h l i g h t s
1999
1998
1997
29,478,222
14,863,647
4,995,970
2,491,396
421,263
370,179
Total Assets
31,969,618
15,284,910
5,366,149
Short-term Liabilities
12,942,211
6,055,053
2,174,943
Long-term Liabilities
286,934
131,137
57,770
Paid-in Capital
7,850,000
2,750,000
1,050,000
Net Profit for the Year
9,960,702
5,875,400
1,738,657
Shareholders’ Equity
8,779,771
3,223,321
1,394,779
14,415,862
7,694,321
2,813,875
2,725,506
1,404,548
718,670
Return on Assets
0.49
0.56
0.49
Return on Equity
1.77
2.67
1.88
Profitability Leverage
3.61
4.77
3.84
Net Profit/Equity
1.13
1.82
1.66
Current Assets/Total Assets
0.92
0.97
0.93
Short-term Liabilities/Total Assets
0.40
0.40
0.41
Shareholders’ Equity/Total Assets
0.27
0.21
0.26
Current Ratio
2.28
2.45
2.30
Liquidity Ratio
2.04
2.36
2.19
Number of Employees
235
220
200
Current Assets
Non-Current Assets
Interest and Porfolio Revenues
Personnel Expenses
A
talented chef uses the right tools at the right time to achieve customer
satisfaction.
Utilizing its advanced technological infrastructure, Takasbank
renders services to the Turkish capital markets in several ways
such as: custody, settlement, banking, international custody and
settlement services, TETS, Takasbank Money Market, Securities
Lending/Borrowing Facility, Securities Purchasing Loans and
Supervision.
Copper bowl, end of 17th century.
02
Securities Settlement in 1999
Cash Settlement in 1999
(TL Billions)
(TL Billions)
Securities Settlement
Securities Settlement/Settlement and
Custody (%)
180,000
45
160,000
40
140,000
35
Cash Settlement
Cash Settlement/Settlement and Custody (%)
50,000
20
45,000
18
40,000
16
120,000
30
35,000
14
100,000
25
30,000
12
80,000
20
25,000
10
20,000
8
60,000
15
15,000
6
40,000
10
10,000
4
20,000
5
5,000
2
0
0
J
F
M
A
M
J
J
A
S
O N
0
0
J
D
M
F
A
M
J
J
A
S
O N
D
Stock Exchange, Settlement and
Custody Transactions in 1999
(TL Billions)
Stock Exchange
Transaction Volume
Settlement and
Custody
Settlement and Custody/Stock
Exchange (%)
500,000
110
450,000
108
400,000
106
350,000
104
300,000
102
250,000
100
200,000
98
150,000
96
100,000
94
50,000
92
0
J
F
M
A
M
J
J
A
S
O
N
D
90
Average
Government
Securities
Average
Government
Securities
(TL Trillions)
(US$ Millions)
3,000
5,000
1,000
1,000
3,000
500
0
98
99
Market Value of
Equities
0
Nominal Value of
Equities
98
(TL Trillions)
99
Nominal Value of
Equities
(US$ Billions)
(TL Trillions)
0
2.00
25
2,000
1.50
5
98
99
1.0
98
99
99
Market Value of
Equities
(US$ Billions)
14,000
0
98
0
98
99
03
B o a r d
o f
D i r e c t o r s
(1) Osman Birsen Chairman, (2) Nejat Dura Deputy Chairman, (3) Emin Çatana Member and General Manager,
(4) Ar›l Seren Member, (5) Emin Ali Gündez Member, (6) Sezai Bekgöz Member, (7) Atalay Birinci Member,
(8) Ahmet Kaçar Member, (9) ‹brahim H›zl›kan Member, (10) Yusuf Ziya Toprak Member,
(11) Bedii Ensari Member, (12) Tangül Durakbafla Auditor, (13) Berra K›l›ç Auditor
6
12
04
2 13
9
4
1
7
10 5
3
11
8
Message from the Chairman
Presently in its fourth year of operation, Takasbank has developed rapidly despite
the negative market conditions prevailing in Turkey, especially in the last two years.
Committed to the ongoing development of the Turkish capital markets, Takasbank
has launched several initiatives in a rather short period of time and taken its proper
place among other highly esteemed institutions within international money and
capital markets.
Providing services related to securities at international standards, Takasbank is seen
as a role model for other countries in the region; its experience and opinions are
frequently solicited. Takasbank has contributed greatly to the capital markets of
neighboring emerging market countries through the experience it has gained in the
Turkish capital markets. In cooperation with the ISE, the Bank also provides
counseling and training services to the institutions of these countries.
In 1999, Takasbank implemented the customer name-based custody system, which
facilitates the conversion of customers’ accounts from code into names of the
holders, as required by the Capital Market Law, passed by the Turkish Parliament.
This system will permit more efficient and effective supervision and auditing; the
Bank will be able to carry out the requirements of the Communiqué for Special
Cases and track the movements of all shares owned by the investors.
Several new software programs were installed during the year to help Takasbank
steadily improve and develop the systems it needs to provide more rapid
settlement transactions. Investment trusts are included in the electronic
communication system that has been developed to track the portfolio value of
mutual funds from Takasbank to the Capital Markets Board. Communication of data
about the distribution of the portfolio of the mutual funds has been initiated as well.
Consequently, Takasbank’s function as the bridge for the flow of data within the
capital markets has been expanded.
Authorized as the clearing house for the Derivatives Market to be established
within the ISE, Takasbank is close to completion of the technical studies in this
area. A report regarding the administration of the Guarantee Fund against the
potential settlement risks of the Derivatives Market has been actualized as well.
Effective marketing activities have resulted in a remarkable increase in the number
of banks trading on the Stock Exchange Money Market; Takasbank has emerged as
an important and effective link between the brokerage houses and the banks. Thus,
these institutions with surplus funds or deficits are able to perform more effective
fund management regarding capital market transactions.
With its success largely due to the scope of its technological infrastructure,
Takasbank has employed the most advanced data processing technologies right
from the start and has developed most of its own software programs without any
external assistance. The data processing network of the Bank has both the capacity
and capability to provide remote access service to all brokerage houses. While
providing access to more than 200 in-house users, it is also able to reach all
investors with the aid of Internet.
On behalf of the Board of Directors, I would like to extend my thanks to our
valuable managers and staff whose efforts have enabled us to reach this high state
of development. I would also like to express our gratitude to the management of
the Capital Markets Board and the ISE who have continuously supported and
encouraged our efforts at Takasbank.
Osman Birsen
Chairman of the Board
05
S e n i o r
M a n a g e m e n t
(1) Emin Çatana General Manager and Board Member, (2) Nezir Bak›r Assistant General Manager,
(3) Ahmet Çak›rsoy Assistant General Manager, (4) Yusuf Çiçek Assistant General Manager,
(5) fievket Yaflöz Head of the Board of Internal Auditors
Couldrons and furnaces in Helvahane (Part of the kitchen where sweets were prepared)
5
06
2
1
3
4
Message from the General Manager
We are leaving another hard year behind us. The earthquake we encountered in
August in addition to the economic problems that prevailed in our country and in
the world in general resulted in a deepening pessimism in the markets which had
previously been rather more optimistic about the future. Stock market activity in
November as a result of the decrease in interest rates was followed by a shortterm regression due to the “earthquake taxes” that were imposed by the
government. Nevertheless, the ISE completed the year by setting historically high
records and earning the title of “most profitable stock exchange in the world”. By
year’s end, the Turkish economy registered negative growth in real terms, yet the
new millennium was welcomed with great expectations and high hopes.
Economic stagnation naturally affected the capital markets as well. Transaction
volume picked up in the last quarter of the year and actually closed with figures
higher than those of the previous year. We, at Takasbank, were successful in
remaining unaffected by these negative conditions.
I would like to present some results obtained this year: At the end of the year, a
total market value of 45 million stocks that were kept under Takasbank custody
amounted to TL 13.9 quadrillion. The number of participants in the Takasbank
Electronic Transfer System (TETS) increased to 69, with transaction volume totaling
TL 41.5 quadrillion. In 1999, total transaction volume in the Takasbank Money
Market increased by 334 percent up to TL 9.7 quadrillion and the daily average
transaction volume rose to TL 39.2 trillion.
Preparations and testing to deal with the Y2K problem commenced in 1998 and
were completed early in 1999. All existing hardware and software were tested and
replaced when found to be non-Y2K compliant. Also during the year the customer
name-based custody system was completed and implemented, and the software
and hardware for the Alo-Takas system were replaced and expanded with the
addition of new functions not previously used.
Some of the information technology projects developed and implemented during
1999 include the transfer of the netting process of ISE stocks to Takasbank and the
blockage system of stocks was revised in terms of ratio, rank and replacement of
stocks with cash. The new bond software of the ISE which was launched together
with the new bond settlement software at Takasbank will permit on-line data
transmission to Takasbank. The automation of defaults in stocks and bonds
transactions was completed, and bonds redemption and coupon revisions have
been performed. Testing in the Derivatives Market has been completed in
cooperation with the ISE and software development is underway for this project on
pricing, guarantee fund and automatic EFT. Performance studies on the database
and the improvement of existing functions to include their use via Internet are
continuing while the development of new systems and revisions regarding the
Credits and Stock Exchange Money Market have begun.
In March 1999, we purchased the building we had been using as our Head Office
since 1995. Thus, we are now able to make the necessary renovations that will
provide our employees a contemporary and more pleasant working environment.
The support and assistance of both the Capital Markets Board and the ISE have
always been a source of strength to Takasbank. I would like to extend my thanks to
the esteemed managements of these institutions as well as to all our shareholders
and customers. I would like to take this opportunity to express my gratitude to our
valuable staff, through whose efforts we have reached such an exemplary position
not only within Turkey, but also within the international arena.
Emin Çatana
General Manager and Board Member
07
Takasbank’s Primary Functions
Takasbank
•
is the only Turkish institution that has been given the responsibility for clearing, settlement,
safekeeping and custody of securities and their numbering according to international
standards.
•
has been authorized by the Capital Markets Board as Turkey’s “Central Securities
Depository”.
•
carries out clearing and settlement services for securities trading transactions taking place in
all markets of the ISE.
•
as the “National Numbering Agency” assigns an International Securities Identification
Number (ISIN) in conformity with international standards to all securities issued in Turkey.
•
provides a variety of domestic and international banking services to banks and brokerage
houses that are members of the ISE.
•
provides resources to the capital market through Money Market facility, Securities
Purchasing Loans and Securities Lending/Borrowing Facility.
•
has enabled the brokerage houses to be sub-members of the EFT system of the Central
Bank of Turkey through the establishment of the Takasbank Electronic Transfer System
(TETS). Functioning as a bridge between money and capital markets has enabled Takasbank
to offer the most rapid, secure and least expensive method of transferring funds.
•
is able to analyze extensive information in its securities database and make it available to
market participants, research, regulatory bodies and the media upon their request.
Ownership and Management Structure
Takasbank is a sector-based bank owned by the ISE and its 104 members. According to the
terms outlined in the Articles of Association, the share of any stockholder may not exceed 5
percent, except the ISE. As of December 31, 1999, Takasbank had a paid-in capital of TL
7,850 trillion, of which 22.60 percent was owned by the ISE, while 27 bank members of the
ISE had 47.07 percent and 77 brokerage houses had 30.33 percent.
The Board of Directors has 11 members and is composed of the ISE, the Capital Markets
Board, representatives of ISE members and the Takasbank General Manager. Four
members of the Board of Directors represent A-group shares owned by the ISE, while
B-group shares are represented by five members of the Board; two members are chosen
from member banks and brokerage houses, while one member is elected from among the
representatives of the banks and brokerage houses having received the highest number of
votes at the General Assembly. One member of the Board is appointed by the Capital
Markets Board as its representative. The General Manager of Takasbank is also a
member of the Board of Directors and is elected from among the candidates nominated by
representatives of A-group shares.
08
Review of Operations in 1999
Custody Operations
Custody operations protect capital market
instruments from fraud, falsification of
documents, theft and misuse. Securities held by
Takasbank are insured against these risks by the
ISE Umbrella Insurance coverage. Takasbank is
authorized to exercise the rights concerning the
securities under custody on behalf of account
holders.
The total nominal value of 3,179,028 equities
held in custody by Takasbank reached TL 155.4
quadrillion in 1999. Most notably the average
nominal value of the certificates increased from
TL 21,445,000 of the previous year up to TL
48,888,242. The main factor leading to such
increase is the certificate value spreading
system to be used in capital increases
recommended by Takasbank to the issuing
companies. The effect of this improvement has
been reflected by the number of securities
collected from the issuing companies against
their capital increase and taken into custody at
Takasbank. During the previous year, 6,056,765
securities with a nominal value of TL 275.1
trillion were taken into custody, whereas in 1999
a total of 898,309 securities were taken into
custody at a total of TL 370 trillion.
Non-fungible Custody
The volume of securities held in custody on
non-fungible basis in 1999 has considerably
increased in both quantity and nominal value. At
the end of the year, the nominal value of
securities held in custody on non-fungible basis
reached TL 99 trillion. This was achieved due to
marketing activities in addition to the reputation
of the Bank in the market and its concept of
effective service.
Rights Services
Rights services include capital increase, dividend
payment and replacement of physical
certificates with newly printed ones bearing
higher nominal values. In addition, the
transactions of a company not traded on the ISE
have been performed.
Transactions for Rights Services in 1999
Number of companies serviced
In 1999, none of the physical ins and outs and
coupon transactions imposed any risk on
Takasbank; all the transactions were performed
rapidly and without error, thereby attaining
ultimate customer satisfaction.
55
Number of transactions for bonus issues
137
Number of dividend distribution transactions
155
Number of replacement of certificates
9
Number of coupons cut
Nominal value of coupons cut
The comparison of the last two years indicates
that the physical withdrawals decreased by
86.75 percent and nominal entries increased by
33.51 percent. In 1999, 1,275,859 securities
(with a nominal value of TL 93.8 trillion) were
physically removed from the custody, compared
to 3,658,568 (TL 52.7 trillion) in 1998. Despite
the decrease in physical withdrawals, the main
reason for the relative increase in the nominal
value of the securities held in custody was the
exchange of securities during 1999. The
decreases in physical movements during the last
two years are an indication that the market is
moving firmly toward dematerialization (bookentry system) in a planned manner.
197
Number of transactions for pre-emptive rights issues
60,660,983
TL 1.2 quadrillion
A total of TL 95.6 trillion in dividends was
collected from issuing companies in 1.44
working days on average after the settlement
day and transferred to the accounts of member
companies. A comparison of data provided in
the electronic environment with those of the
actual coupons showed no inconsistency to
impose risk on the Bank.
Databank Services
Considering that the present stock certificates
will be annulled after implementation of
dematerialization, the Bank provided assistance
to 150 issuing companies regarding the value of
the physical certificates they will print after
capital increases. The intention was to keep the
number of certificates to be issued at a
minimum.
Depending upon the data delivered by the
issuing companies regarding company
shareholder structure, all records of the Bank
A
successful chef is the one who has learned the secrets of his
profession.
Gold-plated copper jug for sweet
fruit drink, 19th century
Takasbank has an important mission regarding the development of
the Turkish capital markets. Accordingly, the employees of the
Bank have been steadily improving their professional knowledge by
attending training programs designed to meet their specific
positions and by keeping a close watch on technological
developments.
09
Review of Operations in 1999
continued
A
n imaginative chef is one who can create new tastes and exciting
new dishes.
Takasbank is steadily improving the quality of its existing products
while introducing new ones required by the capital markets.
were updated as of the end of
September with the exception of 32
companies. Updated data on capital
increases and stock certificates to be printed are
delivered to Takasbank in order to keep the data
in hand current at all times.
Efforts are ongoing to accelerate development
of services for custody on non-fungible basis. In
this respect, custody agreements were
concluded with seven non-ISE-member
institutional investors; their stocks were kept
under custody utilizing this method. The Bank is
planning to gain new clients from among these
companies.
Conic brazier with crescentshaped ornament, early 18th
century
In order to enable member companies and
investors to monitor the General Assembly
blockage transactions, a new program was
prepared and initialized in December.
Customer Name-Based Custody System
The September 25, 1997 Resolution of the
Capital Markets Board (No. 27/1546) stated that
code-based customer sub-accounts are to be
converted to name-based accounts and the
terms and details of the implementation will be
determined and announced by Takasbank.
On November 25, 1997, Takasbank issued a
General Letter (No.178) announcing the deadline
and formats for the conversion of the accounts
from codes, as had been the case since October
1995, to names of their holders.
While these efforts were being carried out,
meetings were held from October to December
1998 at Takasbank informing all brokerage
houses about the customer name-based
custody system. Furthermore, between April 17
and May 15, 1999, brokerage houses were
given the opportunity to check out the
amendments made in their own software
programs utilizing tests provided by the Bank.
According to the customer name-based custody
system, accounts held at Takasbank that have
not yet been converted have been blocked to
prevent removal from the account by the
brokerage house without consent of the
10
beneficiary. Efforts continued to convert the
accounts opened prior to 1998; the process of
entering customer identities has been
concluded. As of January 11, 1999, the
suspension of the brokerage house accounts
that have not been converted to name basis has
been commenced. Accounts opened after the
inclusion of the brokerage house in the system,
but not converted within 15 days, are
automatically suspended. Brokerage houses
have been authorized to enter in the suspended
accounts in order to enable them to allocate the
securities issued due to capital increase.
However, the brokerage house is notified that it
is entering a suspended account and the
transaction is executed upon consent of the
brokerage house.
A total of 90,140 accounts belonging to 159
members except one bank have been
suspended as of December 27, 1999.
Approximately 50 percent of the suspended
accounts consist of sub-accounts having a
balance and stocks with a market value of TL 50
trillion. The Capital Markets Board at its May 18,
1999 meeting numbered 46 decided that the
customer name-based custody system whose
preliminary studies were completed, shall be
implemented as of May 31, 1999 and Takasbank
was notified accordingly. The number of codebased accounts increased from 323,000 at the
end of 1998 to 481,150 at the end of 1999. The
number of name-based accounts for the same
period also increased from 400,000 to 563,345
while the number of open accounts increased
by 170,000 and reached 937,533.
Within the framework of customer name-based
custody system, a blockage facility was
implemented to prevent the brokerage houses
from accessing the accounts without the
knowledge of the account holders. This facility,
implemented as of May 31, 1999, enables the
investors to block the stocks in their open
accounts via the Alo-Takas System using the
codes and account numbers allocated by
Takasbank.
Securities in the blocked sub-accounts cannot
be accessed by the brokerage houses until the
blockage is removed by the account holder. A
blockage can be applied to all securities in the
account as well as to selected securities and on
a quantity basis. Before a sales order is delivered
to the brokerage house, blockage on the
securities, if any, must be removed. As of June
30, 1999 a total of 53 customers had their
accounts blocked. This number was increased to
111 by the end of the year, while the number of
blocked accounts increased from 108 to 123. In
all probability these figures will continue to rise
upon wider recognition and understanding of the
system and its benefits.
A
Since June 1, 1999 code numbers continue to be
assigned and sent to investors upon notification
of the brokerage houses. As of the end of the
year, 455,675 investors have been notified of
their account numbers, codes and sent an
Alo-Takas User Manual via express mail.
Approximately 25 percent of these notices were
The Alo-Takas interactive voice response system,
in use since October 1995, was redesigned at
the beginning of 1999 and launched at the end of
May. Using this system, investors are able to
see their balances, accounts, stocks and data
concerning the brokerage houses, to block or
unblock their accounts and get information via
facsimile. Additionally, updated information and
messages are supplied and transactions are
made in Turkish or English.
Settlement Operations
Takasbank has been designated by the ISE the
center to handle clearing and settlement
operations arising out of securities trading
transactions carried out in the ISE markets. It is
the processing center that organizes the
exchange of securities and cash within a safe,
reliable institutionalized environment. Securities
subject to settlement include equities, depository
certificates, Treasury bills, Government bonds
capable chef always prepares a meal that can be well-digested - no matter
how much is eaten.
Combining settlement and custody transactions under one roof,
Takasbank was able to decrease the duration of transactions,
independent from their amounts. The settlement period, which can
be as long as T+7 in some developed markets, has been decreased
to T+0 in Turkey permitting more rapid and efficient trading.
Mortar made of bronze with
round stand and wide opening,
17th century
returned to Takasbank for several reasons. The
investor’s address information of those whose
notices were returned was classified and
forwarded to the brokerage houses with the
request to correct and update. The customer
name-based custody system, which would
facilitate the conversion to the dematerialized
system as mentioned in the amendments to the
Capital Market Law passed by the Parliament, is
helpful to the authorized auditing bodies. This
system further facilitates the monitoring of all
stocks in addition to helping produce reports on
whether the obligations under the Communiqué
on Special Cases are complied with.
and Turkish Eurobonds. The settlement period is
T+2 for Stock Market operations, T+0 for Bonds
and Bills Market operations and T+3 for
International Market operations. Takasbank,
steadily improving and developing the current
system to realize settlement operations in a
more rapid, easy and reliable way, has begun to
implement new software programs during 1999
and has improved its service quality. Provided
that liquidity priorities will not be altered,
members are able to change the order of the
blocked settlement receivables and also set the
blocked equities free against the presentation of
a cash guarantee.
11
A view of the special kitchen for preparing pastries and desserts.
12
During the year, some measures were taken to
minimize the settlement risks, the order for the
removal of blockage on settlement receivables
has been updated, and the Turkish lira value of
the securities to be blocked is now calculated
based on the second session’s weighted
average prices on T+1 day and a blockage
margin permitted, if required.
In 1999, investment trusts were included in the
system which enables the transfer of mutual
fund portfolio values from the Takasbank system
to the Capital Markets Board. In addition, the
data on the breakdown of mutual fund portfolios
were forwarded to the Board. Thus,
Takasbank’s function as an intermediary for the
dissemination of information has been
enhanced.
Members can access monthly statements on
their office terminals via electronic transfer,
thereby preventing loss of time and labor while
decreasing costs. An e-mail system has been
established between brokerage houses and
Takasbank, allowing the Bank to send messages
to members within an internal automation
system.
Capital blockage operations at brokerage houses
were rearranged in line with a request by the
Capital Markets Board and Takasbank began
monitoring transactions. Brokerage houses were
given the opportunity to present collateral for
capital blockage, termination and notification
receivables regarding time priorities in stock and
bond settlement operations, automation in setoff operations among markets and inclusion of
DvP transfer orders in the system have been
completed. This new system will be time
priority based and therefore parties fulfilling their
settlement obligations early will have the right to
receive their settlement receivables earlier. In
addition, the new system aims to accelerate the
cash flow between the markets and to decrease
the intra-day funding requirement of the markets
through conditional settlement transfer, thus to
facilitate transfer operations between Takasbank
and the brokerage house. With the
implementation of this project, full automation of
settlement activities and non-ISE settlement via
the Takasbank system will be accomplished.
In 1999, a synchronized data transfer system
was established between the ISE and
Takasbank via the Trading System Message
Router (TSMR). This system allows data
regarding contracts concluded in the Bonds and
Bills Market of the ISE to be transferred on realtime basis to the Takasbank system. As soon as
the Derivatives Market commences its
operations, data on contracts that are concluded
in the Derivatives Market of the ISE will also be
transferred to Takasbank. This new system
allows the positions of members in the Bonds
and Bills Market to be monitored on-line and in
real-time by the ISE. The limits allocated to
authorized members are able to be updated
concurrent with settlement limits, and permit
A
knowledgeable chef is one who can meet the special requests of
the customers.
One of the strengths of Takasbank is that it was established to meet
the requirements of the developing Turkish capital markets. Creativity
and the introduction of new products have always been priorities for
Takasbank management.
Gold-plated copper jug for sweet
fruit drink, 19th century
thereof via on-line communications. The
automation project for defaults in equity related
transactions, implemented at the end of the
year, replaced the operations carried out
manually and enabled the members and
Takasbank to execute default-related operations
more rapidly.
Takasbank continued to introduce additional
products to shorten even further the period
needed for settlement transactions. In 1999, the
analysis and design work on projects that would
include transfer messages on the allocation of
members to perform additional transactions
during the day.
Takasbank has concluded most of the required
technical work to qualify as the settlement
center for the Derivatives Market to be opened
within the ISE. Guarantees to be held against
open positions in the market shall be deposited
at Takasbank, which will perform the follow-up,
completion and assessment of these guarantees
and the updating of profit and loss. The software
related to the Guarantee Fund that will be
established to secure against any potential risk
13
Review of Operations in 1999
continued
A
clever chef knows how to store and preserve a variety of food from all over
the world and can offer many different choices on the menu.
One of the founding aims of Takasbank is to dematerialize securities and then
implement the book-entry system. Takasbank can be defined as a huge data
warehouse since it undertakes all book-keeping functions for
securities and information storage in addition to physically
safekeeping them.
of the Derivatives Market has been completed
and is undergoing testing in collaboration with
the ISE. The risk follow-up on an account basis
will be made through the real-time data transfer
system.
The ISE traces the members in the Bonds and
Bills Market with defaults in payment, calculates
the default interest, notifies the member
concerned and collects interest. Software
programs for the follow-up by Takasbank on
default transactions in the Bonds and Bills
Market are underway and will be in operation by
early 2000. Reports showing the positions of
the members at the beginning of the day based
on cash and securities held have been prepared
and added to the system.
Cup used for sweet drinks with a
sun motif and tap, 19th century
Liabilities and receivables reports that have been
produced as a result of ISE transactions of the
mutual funds and net settlement obligations are
being transmitted to the funds in electronic
environment for information purposes. In 1999,
the number of users of the Takasbank Electronic
Transfer System (TETS) that established an online connection between the Central Bank of
Turkey and Takasbank Cash and Securities
Payment System increased to 69. This system
enables the brokerage houses to access the
Electronic Fund Transfer (EFT) system of the
Central Bank of Turkey directly. TETS has been
upgraded and is similar to other software
programs used by Takasbank with new versions
added to the application as needed. Furthermore
starting from 1999, cash settlement receivables
of the banks in the Takasbank Money Market
are being transferred automatically to TIC
accounts at the Central Bank of Turkey. Studies
are almost concluded on the new version of the
TETS software program compatible to EFT2 and
EMKT systems that will be added to the
application by the Central Bank in the year 2000.
Design and analysis studies for the automation
of the Treasury Management Back Office
Transactions Project have been completed and
the software is being prepared.
Credit Operations
Cash and non-cash (securities) loans as
Securities Purchasing Loans and Securities
Lending/Borrowing Facility have been made
available to brokerage houses by Takasbank,
enabling them to facilitate and increase
effectiveness in their capital market
transactions.
14
The credit policy of Takasbank takes into
consideration several facts, including but not
limited to helping the markets gain more depth.
Takasbank’s credit operations include the
allocation and follow-up of credits to the ISE
members in compliance with the policies set; it
also calls for rapid fulfillment of the members’
requirements in the best possible manner.
Credits are allocated within the framework of
the principles of soundness, liquidity and
productivity. Credit types in use facilitate and
increase effectiveness of capital market
transactions by ISE member banks and
brokerage houses through lending/borrowing
cash and securities and by giving them the
opportunity to settle their debts early and letting
them benefit from proceeds under settlement
receivables.
When allocating limits to brokerage houses,
Takasbank first conducts a detailed financial
analysis. As the criteria for allocation, the
following factors are taken into consideration:
the updated balance sheet, the income
statements for the last three years and other
financial reports of the brokerage houses. In
addition, the transaction volume, custody
balances, customer-based custody accounts and
default situations are examined and accounts
are checked for previously unpaid checks and
bills. At the end of the year, Takasbank allocated
limits to a total of 186 members, of which 127
were brokerage houses, 48 were commercial
banks and 11 were investment banks.
Intra-day credits on securities transactions
Number of
transactions
Total amount
(TL billions)
30,000
90
25,000
80
20,000
70
15,000
60
10,000
50
5,000
40
O
30
J
F M A M J J
A S O N D
By the end of December, 57 brokerage houses
have been granted Securities Purchasing Loans,
76 brokerage houses Securities
Lending/Borrowing Facilities and 131 brokerage
houses have transacted on the Takasbank
Money Market.
Feasibility studies are being conducted for the
development of software programs to enable
members to transfer government bonds,
treasury bills, stocks and/or mutual funds used
as collateral via Takasbank workstations in their
own offices. At the end of 1999, work on this
project got underway.
Interest revenue from Securities Purchasing
Loan transactions in 1999 reached TL 1.7 trillion,
a 13 percent increase over the previous year.
Thus, credit operations made up 7.8 percent of
the total operational revenue; in 1998 this total
was 13.14 percent. Average credit used
amounted to TL 1.7 trillion in 1998; this figure
increased to TL 1.9 trillion in 1999. The volume
of stock transactions on credit decreased in
1999 due to economic stagnation, especially due
to the decreases in transaction volume from
domestic and foreign investors following the
August earthquake. This constituted the main
cause for the decrease in the volume of
Securities Purchasing Loans. After October,
investment volume tended to increase.
The Intra-Day Securities Purchasing Loan is a
type of credit allocated to brokerage houses,
dealing especially with foreign investors, to
overcome problems that may arise due to the
delivery versus payment system which is
applied by custodian banks. The Intra-Day
Securities Purchasing Loan volume was realized
at TL 110 billion in 1998; it increased by 104
percent and reached TL 224 billion in 1999.
Interest revenue on the Intra-Day Securities
Purchasing Loan transactions was realized at TL
49.5 billion in 1998; in 1999 this figure increased
by 109 percent and reached TL 103.6 billion.
Securities Lending/Borrowing Facility
In 1998, a total of 544 transactions for the
Securities Lending/Borrowing Facility was
realized; in 1999 this figure increased by 75
percent and reached 953. The total number of
stocks subject of the Securities
Lending/Borrowing Facility was 3.8 billion with a
Securities Lending/Borrowing Facility
Number of
transactions
Total market value
(TL billions)
8,000
160
7,000
140
6,000
120
5,000
100
4,000
80
3,000
60
2,000
40
1,000
20
O
J
F M A M J
O
J
A S O N D
total market value of TL 32.2 trillion. The
increase over the previous year was 375 percent
in terms of number and 340 percent in terms of
market value. The amount of collateral allocated
for the Securities Lending/Borrowing Facility
was TL 8.7 trillion in 1998; in 1999 it increased
to TL 34.7 trillion, amounting to a 300 percent
increase. The commission paid to lending
brokerage houses reached TL 57.5 billion, a 402
percent increase over the previous year; this
figure was TL 11.4 billion in 1998. Efforts to be
able to perform transactions in cases when the
Type and quantity of stocks subject to
Securities Lending/Borrowing Facility
Type of stocks
Number of
stocks (000)
900,000
60
800,000
55
700,000
50
700,000
45
600,000
40
500,000
35
400,000
30
300,000
25
200,000
20
100,000
15
O
0
J
F M A M J
J
A S O N D
Five-tiered portable food container,
made of tinned copper,
18th century
15
Review of Operations in 1999
continued
Minimum and Maximum Values in the Takasbank Money Market
Transaction volume (TL millions)
Number of transactions
Year
Minimum
Date
Maximum
Date
Minimum
Date
Maximum
Date
1996
1997
1998
1999
1,000
2,500
53,500
371,000
26/11
16/01
28/01
18/01
49,500
6,244,000
19,418,500
83,346,000
19/12
23/12
25/12
29/12
1
1
10
15
26/11
02/01
02/01
22/01
7
166
346
473
19/12
15/12
18/12
02/09
date of capital increase or dividend payment
regarding the stocks to be borrowed falls within
the maturity term of the Securities
Lending/Borrowing Facility have been
accelerated; software programs have been
prepared and are ready for testing.
Takasbank arranges the facility in such a way
that the lenders will not in any way be limited in
exercising their rights. After the implementation
of the facility, members who want to borrow
stocks from the Bank will be able to do so on
working days throughout the year.
Distribution of transactions in the
Takasbank Money Market
31%
65%
4%
Brokerage houses
Commercial banks
Investment banks
Takasbank Money Market
The Takasbank Money Market is an organized
market which brings together brokerage houses
with excess short-term cash which they are
unable to invest and brokerage houses that have
a shortage of short-term cash and are not willing
to meet these shortages by divesting their longterm assets. The Market operates under the
guarantee of Takasbank, which is based upon
the counter-guarantees provided by the
collaterals of the counterparties.
The transaction volume of the Takasbank Money
Market, which started in October 1996, has
been increasing considerably. This growth has
continued in 1999 and the volume has reached
TL 9.7 quadrillion - an increase of 334 percent.
The number of participating members rose to
131, an increase of 37.9 percent. New
arrangements in the system that were
necessitated under changing market conditions
and increasing volume were made during the
year. Upon deepening of the market, the
average number of transactions increased by
128.5 percent and the average transaction
volume rose by 337.6 percent.
Treasury Activities
Through interdependence and mutual influence,
economies and financial systems worldwide
were affected by the crises in Far Eastern and
Russian markets. This global crisis also impacted
on the developing Turkish economy and financial
system in a negative way. In spite of this
uneven performance, Turkey was able to
demonstrate positive development in financial
markets and it is expected that this rapid
development will continue. The importance of a
scientific infrastructure is much greater in a
financial market that is progressing rapidly.
Regardless of the level of volatility, profits can
still be generated if realistic and sensible
methods have been applied in the handling of
treasury and risk management.
In a rapidly developing financial market, timely
and correct decisions play an important role in
maintaining levels of profitability and service
quality. Cognizant of this fact, Takasbank has
continued its activities in treasury management
with highly specialized staff who have been
trained in the latest methodology and with stateof-the-art technology. Studies are ongoing to
improve the level of all services and closer
collaboration with other departments within
Takasbank. Through efforts such as these,
Takasbank has been able to achieve consistently
high levels of development despite all the
negative effects of the 1999 global economic
crises. The share of revenue from treasury
management in total revenue has rapidly
increased in the last three years. These
increases were obtained by a careful
management of risk, liquidity, maturity and
productivity and had made an important
contribution to the profitability of the Bank.
Extensive marketing activities during 1999
resulted in a remarkable increase in the number
of banks trading while the intermediary role of
Takasbank between the brokerage houses and
the banks was
emphasized.
Revenues attained by the Treasury Department
Consequently, brokerage
houses and banks with a
Total revenue
Revenues of the Treasury
fund surplus or deficit
(TL billions)
Department (TL billions)
are provided the
opportunity to conduct
1997
3,943,651
1,924,841
an efficient treasury
1998
11,706,063
5,912,927
management.
1999
16
21,657,240
12,457,255
Share (%)
48.8
50.5
57.5
International Relations
Takasbank Money Market Transactions Volume
(TL Billions)
International Services
In addition to correspondent accounts in major
global financial centers in New York, London,
Frankfurt, Tokyo and Milan, Takasbank maintains
correspondent accounts for securities in such
international settlement and custody institutions
as Euroclear and Clearstream.
1,600
1,400
1,200
1,000
800
600
400
200
O
J F M A M J J A S O N D
Avarage Transactions in the Takasbank
Money Market
Average number
of transactions
Average amount of
transactions (TL Millions)
440
180,000
420
160,000
400
140,000
380
120,000
360
100,000
340
80,000
320
60,000
300
40,000
280
20,000
260
10,000
J
F
M A M J
J
A S O N D
Avarage Daily Interest Rates (%)
Central Bank of
Turkey Interbank
Takasbank Money
Market
100
•
•
•
82
80
78
76
74
72
70
68
66
•
•
•
0
J
F
M A M J
J
A S O N D
Takasbank is an active member of the SWIFT
system - the international financial
telecommunication network. Thus, international
transactions are realized through orders
delivered in a completely electronic environment
with high data security, and statements are
received and forwarded within this environment
as well.
Takasbank serves Turkish brokerage houses
having securities transactions abroad with
settlement and custody activities using its cash
and securities accounts with overseas
correspondents. Furthermore, international
institutional investors are provided with direct
settlement, custody and permanent
representative services in Turkey.
ANNA Membership
Designated as the National Numbering Agency
to allocate ISIN and CFI codes for securities
issued in Turkey, Takasbank is a member of the
Association of National Numbering Agencies
(ANNA). Takasbank hosted the meeting of
Emerging ANNA Members held in Istanbul in
March 1999 and chaired the working group
concerned with Emerging ANNA Members that
was set up at the ANNA Ordinary General
Meeting held in Budapest in May 1999. As a
member of Global ISIN Access Mechanism
(GIAM), Takasbank has been connected to
GIAM-II in 1999, a new Internet based system.
New ISIN and Securities Database Project
In order to provide more effective service in the
allocation and distribution of ISIN codes, in 1999
a new numbering system has been developed
for fixed income securities and stocks. The part
of the project related to fixed income securities
has been carried out in cooperation with the
Central Bank of Turkey and the ISE. It is planned
that the use of ISIN codes will become
compulsory in the trading system of the ISE, the
system of the Central Bank of Turkey and the
Takasbank custody system for government debt
instruments starting from February 2000.
ISO TC68/SC4 Membership
Takasbank represents the Turkish Standards
Institute at the ISO TC68/SC4 working
committee of the International Standards
Institute (ISO) dealing with the development of
the standards for securities.
ISSA Membership
As a member of International Securities Services
Association (ISSA), Takasbank represents Turkey
at the European Forum together with the ISE.
Relations with Neighboring Countries
Takasbank is a role model for other countries
within the region and frequently acts as an
experienced consultant in this field. The Bank
shows the same degree of competency in the
markets of other emerging countries as it has in
the development of Turkish capital markets since
its establishment. In this regard, Takasbank has
trained expert personnel from the Balkan States,
Central Asian Republics and other countries in
the region; mutual visits have been carried out
and joint working programs have been organized.
Within the context of close cooperation with
stock exchanges, custody and settlement
institutions of the countries in the region, the
senior management of the ISE and Takasbank
visited Kyrgyzstan, Kazakhstan and Uzbekistan in
June 1999. During these visits, cooperation
agreements were concluded with each country
aiming to examine economic institutions and
capital market institutions in the region. Also
included was a look at the potential for
collaboration and a sharing of experiences by the
ISE and Takasbank with local authorities.
Human Resources and Training
At the end of 1999, 235 personnel, including top
management, were employed at Takasbank; of
this total, 15 were temporarily employed data
input operators. Almost 60 percent of the
personnel have university degrees. Selected
university graduates are encouraged toward
earning their Masters’ or Doctorate degrees
while others are supported to attend higher
educational institutions.
Since the beginning of 1998, a special bonus has
been offered to employees who acquire or
improve their existing knowledge of a foreign
language; to date, 41 staff members are taking
advantage of this opportunity. Takasbank has
adopted an open performance evaluation
system, utilizing management by objectives
methodology, which encourages participation
Takasbank Money Market Transactions Volume
Total Transaction Volume
Daily Average
Number of Transactions
Year
No. of
Working Days
TL Millions
US$ Millions
TL Millions
US$ Millions
Total
Daily
average
1996
1997
1998
1999
65
251
250
248
288,000
399,166,000
2,239,736,500
9,723,998,500
3.55
2,639.31
8,619.04
21,899.21
4,431
1,590,303
8,958,946
39,209,671
0.05
10.52
34.48
88.30
47
12,896
47,716
90,728
1
51
191
366
17
Review of Operations in 1999
continued
A
resourceful chef can use materials in the most economical way and thereby
decrease the cost of food production.
The treasury managers at Takasbank have kept the risks at a minimum and maximized
profits, even under difficult market conditions. Utmost care has been given to
maintaining a variety of instruments, matching maturity structures and
holding liquidity at optimal levels.
and creativity among the staff while consistently
maintaining high motivational levels.
Copper cooking pot with
two handles, end of 19th century.
18
Uniqueness of Takasbank’s services prevents
hiring specialized personnel from other
institutions. Therefore, the inexperienced new
workforce members are required to undergo
extensive instruction and first receive
in-classroom orientation then on-the-job training
in various departments of the Bank. In this way,
new employees gain practical experience while
being motivated toward the common goals
articulated by the institution.
transactions and expanded the product-servicebusiness partner network - that it has become
necessary for the information system risks to be
kept under strict control. Takasbank personnel
must be kept informed of the latest
developments, information and knowledge
gained by other specialized institutions
employing international standards. In this regard,
the staff participated in a six-day Supervision of
Information Systems and Risk Management
training program held for the first time in Turkey
by Arthur Andersen Co. Thirteen members of
Takasbank participated in this program, 11 from
Software and Operations, System Development
and the Board of Internal Auditors; these were
accompanied by two participants from the ISE.
During the year, five staff members were sent to
England for one month of specialized training;
the program was under the sponsorship of the
Turkish Bankers’ Association and within the
framework of the Turkish-English Banking
Scholarship Program.
In 1999, in addition to the basic orientation
program, training sessions were held for existing
staff on such topics as: money and capital
markets, banking and finance, data processing
technologies, ISE activities and human
resources. In October, English language training
was resumed. In 1999, 596 personnel
participated in a total of 125 training programs,
for an annual total of 13,583 training hours; the
hours of instruction per employee increased by
118 percent compared to 1998 and reached 59
hours in 1999.
System Development and Software
With success largely based on a well-developed
technological infrastructure, Takasbank has
employed the most advanced information
technology right from its inception. Without
support from local or international institutions, it
has developed most of its own software
programs. The data processing network of the
Bank has both the capacity and capability to
provide remote access to more than 200 inhouse users and remote services to all brokerage
houses in addition to all investors via Internet.
Besides individual training, employees have
taken part in training programs offered for selfenrichment, development of esprit de corps,
quality and project management, use of the
“Outlook” software, Call Center and group
English language instruction. With its welldeveloped communications network and
systems infrastructure, the Bank is able to create
tailor-made applications. During the year,
Takasbank has enhanced system development
and implementation, system support and
helpdesk facilities utilizing its own
communication network and system
infrastructure. Takasbank’s position is of such
vital importance for money markets - in that it
has increased the number of international
Some of the projects developed and
implemented during 1999 include the following:
Social and sports activities such as company
picnics, bowling and backgammon tournaments
have been organized for the participation of all
staff members during 1999. These activities
contributed to the esprit de corps of the
personnel and have provided opportunities for
families to meet to develop close personal
relationships.
• Preparations and testing regarding Y2K
compliance were completed and existing
hardware found not to be Y2K-compatible was
replaced, while some software programs were
upgraded with Y2K-compatible versions.
• All functions for the customer name-based
custody system were completed and
implemented.
• The hardware and software belonging to the
Alo-Takas System were replaced and the
capacity of lines increased with the installation of
a new telephone exchange. Several new
functions have been added to this system.
From left to right:
Ladle, beginning of 18th century,
Mustafa A¤a Foundation
Perforated ladle, bearing the signature
of Hac› Hafi, end of 17th century
Hanging copper bowl, 17th century
Copper jug with handle,
mid-17th century
• The production of ISIN codes for government
internal debt securities jointly executed by the
Central Bank of Turkey, the ISE and Takasbank
was begun.
• The netting process of stocks traded on the
ISE began within Takasbank.
• Stock blockage transactions were reviewed in
terms of ratio, order and replacement of
blockage value with cash and were
implemented.
• With the new bonds software in use at the
ISE, transactions with Takasbank were able to
be performed on-line.
• Automation of defaults in stock and bond
transactions were completed; redemption and
coupon payment revisions were performed.
• Testing with the ISE in the Derivatives Market
was completed and software to remunerate
Derivatives Market transactions, guarantee fund
and automatic EFT has been ongoing.
• Performance studies on the database and
improvement of existing functions to include
their use via Internet were carried out.
• Studies on the development of new systems
and revisions regarding Credits and Takasbank
Money Market continued.
In addition to these efforts, numerous software
programs relating to banking transactions were
developed and many already in use upgraded.
Projects planned for the year 2000 include the
following:
• Conditional Stock Settlement Transfer
transactions
• Inter-markets automatic off-setting
transactions
• EFT2 project to be run by the Central Bank of
Turkey in April 2000
• Conditional Bond Transfer applications
• Electronic Securities Transfer (EST) project to
be run by the Central Bank of Turkey in
November, 2000
• Development of ISIN codes for private sector
securities, development of ISIN electronic
database and provision of this for use by
institutions and investors
• The establishment of a Disaster Recovery
Center at a remote location
• Conversion to customer-based bond custody
• Establishment of a data warehouse
• Automation of market supervision
• Primary market transactions
• Establishment of an automatic inventory
system to follow the fixtures, data processing
materials and invoices
Legal Affairs
Operations, which have been expanded in
parallel with the evolution of market conditions
over the years, have also led to a broadening of
the scope and activities of legal affairs at
Takasbank. In addition to representing Takasbank
in court cases, this Department is also
concerned with cases involving the bankruptcy
of brokerage houses. As a trustee, it oversees
the collection of commissions from these
institutions and is in a position to provide
information to the courts concerning securities
with stop-action notices. It inspects contracts to
which Takasbank is a party.
Court injunctions on payments for certain
securities with stop-action notice are carefully
traced through the Turkish Commercial Register
Gazette and other officially released documents,
since there is the possibility that the investors
and brokerage houses may incur great losses.
Ensuring the registration of prohibited securities
and, in the event that they are found to be
present among those held in custody by
Takasbank, an application to the court to lift the
injunction is made.
The Department supervises the contents of
contracts relating to cash, securities, collateral,
conditional transfers and TETS that are given to
Takasbank by brokerage houses, investment
trusts and mutual funds; it assures that the
authorized signatories are defined into the
system.
Administrative Affairs and Purchasing
Administrative activities to meet the
requirements of all logistical and support
services of Takasbank are performed to improve
the satisfaction and motivation of the
employees. The Administrative Affairs and
Purchasing Department exhibits team work
through effective in-house communication and
compliance. It matches the requirements within
the framework of the principles of labor safety,
cooperation and labor discipline.
Utmost attention has been given to the
development of advancements in application
fields by keeping track of developing technology.
The Department strives to adopt to these
changes, fulfill its obligations to society and
protect the environment.
The magnitude of transactions and technological
advancements is increasing along with the
19
Review of Operations in 1999
continued
A
skillful chef is able to use many different kinds of equipment in the kitchen to
prepare food in the best way.
Aiming for continuous development, Takasbank is adopting new technological
advancements rapidly. In this respect, studies regarding the computer system and
software products are carried out with the Bank’s own resources and personnel without
any technical support from outside.
From left to right:
Copper jug with handle having
the inscription “Kilo k›yye”
Two-handled bronze mortar,
without stand, end of 17th
century
development of capital markets, which
have also expanded the variety and
extent of support services at Takasbank.
The Department is responsible for
purchases, transportation,
communications, archives, insurance and
technical services. It is equipped with
competent personnel and the latest
technology to respond in a rapid and
effective manner. Related sub-divisions of
the Department handle maintenance, repair and
supervision of the infrastructure of its modern
facilities. In addition, the Administrative Affairs
Department oversees the supply, repair and
maintenance of office materials and equipment;
the repair and maintenance of motor vehicles;
the maintenance of communication lines
connecting the Bank to other banks and
brokerage houses via Turk Telekom and TETS,
the transportation needs of the personnel;
general cleaning services; and meals. All
documentation arriving at the Bank is forwarded
to the proper departments within a computerized
environment, back-ups are then made and
archived.
Takasbank, acting in the capacity of an
authorized Aksigorta agent, provides insurance
services expeditiously through on-line connection
set-ups between the Bank and the Aksigorta
Head Office. Utilizing this facility, different types
of risk from numerous brokerage houses and
clients in different risk categories can be insured
as well as the Bank itself.
Communication systems within the Bank have
been developed to cope with an intense
business environment. Technological
developments, the Alcatel 4400 telephone
exchange and new equipment and devices have
been implemented accordingly. An Integrated
Subscriber Digital Network System was
developed and is in operation.
The members of the Board participate in training
sessions by competent institutions in order to
minimize problems that might occur within
information systems, especially during the period
of conversion to the dematerialized system.
Members with this type of training audit the risk
within the information systems as well. In
addition to auditing applications, pro-active
supervision techniques are used during the
process as required.
All security systems were made Y2K-compatible
and entrances to the buildings have been
equipped with detection devices using the latest
technology.
20
Board of Internal Auditors
The Board of Internal Auditors acts as a risk
control center using an effective internal auditing
system that traces and controls any risk that
may be encountered during custody, settlement
and banking operations by continuously
monitoring the process throughout the year.
The Board of Internal Auditors audits all
Takasbank departments to ensure that their
activities are carried out in strict compliance with
official rules and regulations. It also takes an
active role in working toward expanding the
scope and volume of settlement and custody
operations and increasing the variety and quality
of services rendered to capital markets.
Management
Team
Emin Çatana
General Manager and Board Member
Nezir Bak›r
Assistant General Manager
Ahmet Çak›rsoy
Assistant General Manager
Yusuf Çiçek
Assistant General Manager
fievket Yaflöz
Head of Board of Internal Auditors
Tolga Somuncuo¤lu
Custody Manager
Arzu Öztürk
Systems Development Manager
Ender Aybulus
Software and Systems Operations Manager
Mustafa fientürk
Human Resources and Training Manager
Mehmet Günal
Credits and Money Market Manager
Tanju Günel
Operations Manager
‹brahim Samanc›
Accounting Manager
Cahit Girgin
Legal Affairs Manager
Gülcan Tok
Administrative Affairs and Purchasing Manager
Suat Sevand
Treasury Manager
Eflref Hatipo¤lu
Security Staff Manager
Produced by Finar Lloyd Northover Citigate
TAKASBANK ISE Settlement and Custody Bank Inc.
Abide-i Hürriyet Caddesi Mecidiyeköy Yolu Sokak No:286 fiiflli 80260 ‹stanbul / Turkey
Tel: +90 212 315 25 25 (Pbx) Fax: +90 212 315 25 26 (Pbx)
Alo-Takas: +90 212 315 22 22 (Pbx) web site: http://www.takasbank.com.tr
A n n u a l
The
chef
R e p o r t
1 9 9 9
kitchen of the
Turkish capital markets
in the