The Banking Regulation and Supervision Agency's (BDDK) audit report of Bank Asya revealed that the privileged shareholders of the bank signed blank transfer contracts and a large number of shady transactions were carried out. Turkish banking regulators on Friday have passed the decision to seize the entire shares of Bank Asya, due to the bank's failure to fulfill its obligations despite the measures taken by Turkey's banking watchdog. The mystery in the transfer of Bank Asya, which is known for its links to the Gülen Movement, to the Savings Deposit Insurance Fund (TMSF) is being unveiled.The audit report, which was addressed during the 4.5-hour meeting of the BDDK, unfolded that 40 percent of the bank's privileged shareholders signed blank transfer contracts, making the bank's shareholding structure questionable. Pointing to the deterioration in the bank's financial structure, the report said that the assets of the bank shrank considerably.After all rights of 63 percent of stakes, belonging to the bank's A group shareholders, was transferred to the TMSF with the exception of dividends on Feb. 3, the BDDK launched an investigation into the bank, finding a number of dubious transactions in the investigations carried out by financial crimes specialists and the financial crimes unit of the police department.In addition to dubious transactions, which proved that the bank was made vulnerable to external interventions, other documents were found, revealing that some Gülen Movement members in the bank's Turkey branches transferred unaccounted money to the U.S. by using the bank's legal entity. Financial crimes specialists and the financial crimes unit of the police department are carrying out investigation to see whether the unaccounted money is illicit or not.A three-option plan will be pursued to make the bank's fate clear. The bank will be immediately sold if it can find a client. If not, it will be merged with a participation bank. Or, it will be partly or completely transferred. Authorities from the TMSF said this transaction can be actualized in less than three months. If the sale or transfer cannot be carried out, liquidation will be resorted to as the last opportunity for the collection of public receivables. In this case, the TMSF might impose an injunction on the properties of former shareholders.The BDDK's decision of the transfer of Bank Asya to the TMSF was published on the official gazette. As the bank's operating permit was not removed, there are no troubles for depositors.Authorities from the TMSF said clients can withdraw all of their deposits, adding, "The bank is actually continuing its operations." The TMSF will meet deposits; however, if there is a considerable amount of deposit outflow, the loss of the bank will be referred to shareholders. Meanwhile, a sharp fluctuation was seen in Bank Asya's trading securities in the watch list companies market on Friday. Securities rose from TL 0.85 to TL 0.90, marking a surge of around 6 percent in the opening session, while they dropped to TL 0.76 due to hard sells in the closing session, marking a daily loss of 10.5 percent. In response to the assertions that the BDDK's decision was a political one, Deputy Prime Minister Ali Babacan said that if the claims had been true, they would not wait for 1.5 years to transfer it implying the December 17 and 25 operations.Babacan noted that the decision was passed on the grounds of problems experienced in financial, shareholding and administration structures and operations. This decision does not only concern the BDDK, as there are technical studies and reports behind it, stated Babacan, adding that the board needs a sound audit report to take such decisions.Prime Minister Ahmet Davutoğlu also responded to questions regarding the issue and emphasized that the reliability of the Turkish banking system comes from its transparency. Davutoğlu stated that partners, borrowers and the use of the credits in the Turkish banking system are all known as it is under assurance of the state, however, it is what is missing in the Bank Asya case. The Prime Minister said creditors' rights will be protected.