Bank Asya's investment body title canceled

DAILY SABAH
ISTANBUL
Published 05.08.2016 01:29

On Thursday, the Central Securities Depository (MKK) announced through a statement published on the Public Disclosure Platform (KAP) that Bank Asya's membership in the investment enterprise was canceled.

The decision was taken in accordance with the 24th clause under the scope of the MKK's regulations concerning the cancellation or takeover of all authorizing licenses belonging to investment institutions. Based on this clause, Bank Asya's membership in investment enterprise was announced to be canceled.

Bank Asya, which was taken over last year in May by the Savings Deposit Insurance Fund (TMSF), had announced in July that the Banking Supervisory and Regulatory Authority (BDDK) lifted its official authorization to operate, relying on Article 107 of the Banking Law. According to the article, the banks are given shareholder rights as well as management and inspection exceptions for dividend rights, but it requires the bank's structure as a financial institution to be strengthened and restructured for any takeover, merger or acquisition to occur within, at the latest, one year's time, along with an additional three-month process to be initiated after the takeover has begun. Otherwise, the Fund Council cancels the bank's license to operate.

The tender for the sale of Bank Asya's shares had been scheduled by the TMSF on July 15; however, no bid was offered for the tender. Upon failure of the bank's sale in spite of the works conducted for almost more than a year, as previously announced, the Fund Council took the next step to determine the fate of Bank Asya, deciding to temporarily freeze bank operations effective on June 18 when markets opened following the failed coup attempt on the night of July 15. On May 29, 2015, the BDDK ruled for the complete TMSF takeover of all shares of Bank Asya, which was believed to be the main financial institution for the controversial Gülen Movement and affiliated companies, due to the bank's failure to fulfill its obligations under the scope of Article 70 of the Banking Law that regulates the BDDK's intervention in troubled banks. The BDDK added that the trouble in Bank Asya's financial structure, its maladministration and operations pose risks to depositors as well as to the security and stability of the financial system.

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