Improving Banking Supervisory Mechanisms
In the OIC Member Countries
30
Figure 22: Securities
Source: Bankscope
Majority of securities portfolio is hold under the available for sale (AFS) classification. Trading
portfolio is a very small portion for the selected member states. Market risk is calculated on
the basis of AFS and trading portfolio. One third of the securities portfolio is hold as held to
maturity positions. So banks trading activity can be said to be very limited.
3.1.3 Credit Risk in Selected OIC Countries
In Figure 23, the average decomposition of loan portfolio is provided. The majority of loan
portfolio is distributed in the form of corporate and commercial loans, which is followed by
consumer loans. This decomposition justifies the relatively higher values of credit risk assets
since risk weights for corporate and commercial credits are higher than that of consumer
credits. On the other hand around 10 % of the loan portfolio is distributed for mortgages. This
is not too big compared to US case where much higher portions of credits are given in the form
mortgages.
Figure 23: Loans Decomposition (% of Total Gross Loans)
Source: Bankscope
Trading Sec. & at
FV
through Income
2%
Available for
Sale Securities
67%
Held to
Maturity
Securities
31%
Securities Decomposition
(for Selected OIC Members)
Residential
Mortgage Loans
(% of G. Loans)
9%
Other Consumer
Retail Loans (%
of G. Loans)
21%
Corporate &
Commercial
Loans (% of
Loans)
51%
Other Loans
(% of. Loans)
19%
Loan Decomposition
(for Selected OIC Members)