Bank Asya's shares close on BIST for at least 6 months
by Daily Sabah
ISTANBULJul 23, 2016 - 12:00 am GMT+3
by Daily Sabah
Jul 23, 2016 12:00 am
The management of the Borsa Istanbul stock exchange (BIST) announced through the Public Disclosure Platform (KAP) on Friday that Bank Asya's shares on the BIST would continue to be closed for transactions for at least 6 months.
Until the bank's sale was realized, Bank Asya's shares were initially closed to transactions on July 15 when the tender for the sale of Bank Asya's shares was scheduled by the Savings Deposit Insurance Fund (TMSF); however, no bid had been offered for the tender. Upon the failure of the sale, as previously announced, the next step regarding the destiny of the bank was taken by the Fund Council, which decided to temporarily freeze the operations of Bank Asya on Monday, when markets opened following the failed coup attempt on the night of July 15.
On May 29, 2015, the Banking Supervisory and Regulatory Authority (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, administration and operations pose risks to depositors as well as the security and stability of the financial system.
The Gülen Movement is accused of infiltrating state institutions through large-scale cheating and nepotism with aims to topple the democratically elected government through investigations launched by members who had infiltrated the police and judiciary and prepared investigative files based on fabricated evidence and illegal wiretapping. Moreover, the failed coup attempt was realized by military officers loyal to the U.S.-based, fugitive imam, Fethullah Gülen to unseat President Recep Tayyip Erdoğan, which caused 208 deaths and left 1,491 injured.