May 30, 2015

Bank Asya says TMSF takeover not to affect banking activities

Bank Asya, which has been handed over to Savings Deposit Insurance Fund (TMSF) in a government-backed decision by the Banking Regulation and Supervision Agency (BDDK), has announced that the takeover will not influence its banking activities.

In a statement posted on the bank’s website, the bank administration said the bank will continue to provide “high-quality service in line with participation banking” to its customers as it did in the past.

BDDK announced late on Friday that it had handed over control of the bank to the state-run Savings Deposit Insurance Fund (TMSF) after a months-long political campaign targeting the bank.

The BDDK said it acted as "problems experienced in the bank's activities with its financial structure, its partnership and management makeup presented a danger ... in terms of confidence and stability in the financial system."

Bank Asya, founded by sympathizers of Turkish Islamic scholar Fethullah Gülen, has been targeted by President Recep Tayyip Erdoğan since a corruption scandal implicating people in his inner circle erupted in December 2013. Erdoğan blames the Gülen movement, also known as Hizmet (service), inspired by Gülen, for the corruption scandal, which it brands a “coup attempt.”

The BDDK ruled earlier this year that management control of 63 percent of the privileged shares held by A-type shareholders be handed over to the TMSF.

Published on Today's Zaman, 30 May 2015, Saturday