The insured participation funds at the Bank Asya, the participation bank controlled by the Gülenist Terror Group (FETÖ), are being paid to the rights holders through the state-owned Vakıf Participation Bank.

Under the scope of counterterrorism measures, one of the most notable steps taken by the Ankara on May 29, 2015, the Banking Supervisory and Regulatory Authority (BDDK) ruled for a complete takeover by the Savings Deposit Insurance Fund (TMSF) of all Bank Asya shares, which was the main financial institution of FETÖ and companies affiliated to it.

The bank was allegedly mismanaged and failed to fulfill its financial obligations, posing risks to Turkey's financial sector, under the scope of Article 70 of the Banking Law, which regulates the BDDK's intervention with banks that are in financial trouble.

In October, TMSF Chairman Şakir Ercan Gül said any funds remaining as a result of Bank Asya's liquidation process will be rendered to the bank's shareholders in accordance to their share percentage.

According to yesterday's announcement, up to TL 100,000 ($28,247) of the total of insured participation funds at the Asya Participation Bank have been paid to the right holders in Turkish liras. The banks operating permit has been abolished in accordance with the last paragraph of Article 107 of the Banking Law No. 5411 and BDDK's decision no. 6947 on July 22, 2016. Later, its transactions were done in accordance with Article 106 of the law mentioned by the TMSF.

Payments were not being made in foreign currency or precious metals to the right holders who had foreign exchange accounts and precious metals at the bank.

In determining the amounts paid from the participation funds, data as of July 22, 2016, related to the accounts in Asya Participation Bank, were taken into consideration.

The fall of Bank Asya Bank Asya entered the sector with its Central branch in Altunizade, Istanbul on Oct. 24, 1996. With a decision numbered 6187 and dated Feb. 3, 2015 and within the scope of the Banking Law No. 5411, the BDDK announced its decision that the non-dividend partnership rights with regards to the shares of the aforementioned shareholders would be used by the TMSF on the grounds that the Asya Participation Bank could not present a transparent and open partnership structure that would not obstruct the effective supervision of the institution in terms of the bank's privileged shareholders.

With the decision numbered 6318 and dated May 29, 2015, the BDDK transferred Bank Asya's "management, supervision and partnership rights excluding dividends" to the TMSF.

The BDDK later decided to cancel the operating permit of Bank Asya, which was put on sale by the Fund Board and did not receive any offers despite the extension of the bidding period, in accordance with the decision taken on July 22, 2016 and within the framework of the last paragraph of Article 107 of the Banking Law No. 5411.