February 11, 2015

Banking regulator’s early deadline the basis for takeover

The Chairman of Turkey’s number one publicly traded participation bank Bank Asya, Prof. Dr. Erhan Birgili, underlines numerous injustices inflicted on the banking regulator’s management takeover of Bank Asya on February 3.

Escorted by police, the raid on Bank Asya handed over the management to the Savings Deposit Insurance Fund, acting on orders of the Banking Regulation and Supervision Agency (BDDK) who claimed that the bank had not submitted information regarding the founding partners and changes in shareholding structure on time.

According to the ousted chairman, the 11 documents had taken time due to the heavy workloads of the notary offices, but by the time of the February 3 raid, the bank had submitted 58% of the requested files. Yet the officials decided to grant the highest form of punishment, the temporary management take over, citing lack of transparency whilst refusing to extend the deadline on the urgent request.
“The BDDK notably justified the management takeover of the 63% shares, based on the fact that 63% of the requested documents were not completed. Had the banking sector regulator held its meeting in the standard time frame and not deliberately called for an extraordinary meeting 63% of the documents would have been prepared. However it is more than sufficient for 51% of the shareholders to prove their ownership.”
Stating that there are over 30 comptrollers and inspectors at the bank working closely with the BDDK which frequently change, Birgili adds that there could have been no uncertainty over the shareholders stating, “Especially after 17 December the bank has been under even stronger inspection. The BDDK has knowledge of all our transactions.”

The chairman added “Furthermore had the qualifications of the shareholders not been sufficient this would have been addressed in the 22 November 2014 general assembly meeting, approved by the Banking Regulation and Supervision Agency as well as the Ministry of Industry.”

Birgili expresses that the official documents have been completed, “The temporary management takeover should be abolished and handed back due to the fact that the temporary status can no longer exist as 75% of the shareholders have provided the proof.”

The Bank Asya chairman also extended a thank you for the bank customers and others who went to make deposits and open accounts in a show of solidarity. “We cried tears of pride when we saw that these people came on their own will and made deposits to the bank.”

“Our customers should not be worried. We have already filed an official warning stating that the new management will be responsible for any losses incurred by the bank,” he said.

Prof. Dr. Birgili “things will go back to normal and the bank will go back to contributing to the Turkish economy.”

Published on BGNNews, 11 February 2015, Wednesday