Why did Turkey seize Bank Asya?

Supporters of the Gulen movement read the Quran as they gather in front of the Bank Asya headquarters in Istanbul, Feb. 4, 2015. (photo by REUTERS/Murad Sezer)
Supporters of the Gulen movement read the Quran as they gather in front of the Bank Asya headquarters in Istanbul, Feb. 4, 2015. (photo by REUTERS/Murad Sezer)


Date posted: February 10, 2015

In September 2014, in an address to the Turkish Industry and Business Association, Turkish President Recep Tayyip Erdogan made the following statement: “No effort is underway to cause the bankruptcy of a bank. That bank is already bankrupt. They are carrying water by hand to keep it afloat.”

Erdogan’s remarks, which targeted Bank Asya, owned by businesspeople close to the Gulen community, made headlines the following day, creating the impression that the bank had collapsed. Making such comments about a financial institution constitutes a dangerous move, as it could cause panic among clients and lead to mass deposit withdrawals. The headlines, however, failed to spark fear or panic among Bank Asya clients. They were all aware that the bank’s Gulenist links had put it in the government’s crosshairs.

Under normal circumstances, had Bank Asya’s capital structure weakened or had it gone bankrupt, it would be taken over by the Savings Deposit Insurance Fund (TMSF). Yet, not only did the bank have a robust capital structure, but it had also strengthened itself by the sale of several affiliates. Nevertheless, late on Feb. 3, Turkish television channels broke the surprising news that the TMSF had taken control of Bank Asya.

A story run by the state-owned Anatolia news agency at 10:09 p.m. reported: “The Banking Regulation and Supervision Agency (BDDK) established that Bank Asya had violated a Banking Law provision that requires banks to have ‘a transparent and open partnership and organizational scheme that does not obstruct the efficient auditing of the institution’ and therefore decided to transfer 63% of the bank’s preferred shares to TMSF’s disposal.” According to Anatolia, the BDDK had determined that Bank Asya had failed to submit information and documents concerning 132 of the bank’s 185 privileged shareholders, leading to uncertainty with respect to those shareholders. Meanwhile, the TMSF only said the bank’s “management had been taken over. Bank Asya’s routine activities will continue.”

The news could have sparked panic despite continuation of the bank’s routine activities. In an interview with Al-Monitor, Masum Turker, former state minister for the economy, commented that the method used to take control of the bank’s management was “unprecedented” and could have been designed to trigger panic among clients and push them to withdraw deposits.

Clients did rush to Bank Asya branches, but they did so to open new accounts to deposit modest sums, not to withdraw their money. A deposit holder interviewed Feb. 5 by Samanyolu TV said, “We came over not to withdraw money, but to deposit some. We’ll be selling our [gold] rings and bracelets to keep our bank standing.” Another client was seen holding a banner that read, “The state is trying to sink a bank, and we, the people, are coming to rescue it.”

For a bank to be seized, its capital sufficiency ratio — the ratio of the bank’s capital to its obligations — has to fall below 12%. Bank Asya has a ratio of 18%, which makes it one of Turkey’s strongest lenders. Yet, the government made the unprecedented move of taking control of the bank’s management by citing its failure to submit information and documents concerning some of its shareholders. According to Turhan Bozkurt, economy editor for the daily Zaman, it was “an attempt by the state to bankrupt a bank.”

The move against Bank Asya sparked anxiety among foreign investors in Turkey and had an immediate impact on the Istanbul stock exchange. The shares of banks with foreign partners suffered heavy losses Feb. 3-4.

Was there any anticipation ahead of the evening of Feb. 3 that Bank Asya might collapse? Tracing stock exchange movements, one could argue that such a story was already circulating on the afternoon of Feb. 3. The main index of the Istanbul stock exchange had started the day with a 335-point increase, reaching 90,048 points. In the afternoon session, however, an abrupt wave of heavy selling caused the main index to plunge 2,204 points and close the day at 87,509 points. The banking index suffered the heaviest losses, falling 4.24%, which suggests a sharp reaction by investors in banking shares.

Selling at the stock exchange continued Feb. 4 after the decision against Bank Asya was formally announced. The main index shed another 1,598 points, or 1.83%, to close the day at 85,910 points. Banking shares again suffered losses of more than 4%. Only 10 days earlier, market watchers had been discussing whether the index could break the 100,000-point benchmark.

Foreign investors appear to be worried that a bank’s management can be so easily seized in Turkey. To take control of a bank with a strong capital structure — and whose first branch was opened in 1996 in a ceremony attended by the then-prime minister and Erdogan himself, then Istanbul mayor — is not something that foreigners can fathom.

On Feb. 5, Umut Oran, a parliamentarian for the main opposition Republican People’s Party, submitted a written question to Deputy Prime Minister Ali Babacan, who is in charge of the economy, in a bid to uncover what went on behind the scenes. The document, which Oran made available to Al-Monitor, includes three questions:

  • Did the order to take control of Bank Asya’s management come from Erdogan?
  • What was the purpose of the BDDK deputy chairman’s visit to Erdogan on Feb. 2? Was it to discuss the Bank Asya operation?
  • Given that Bank Asya has been operational since 1996, is it only now that [the authorities] have noticed the bank’s failure to submit information and documents concerning privileged shareholders?

Source: Al-Monitor


Related News

Another Victim of Erdogan’s Wrath

Erdoğan’s unceasing bid to bury the bank is largely driven by his declared witch-hunt against institutions affiliated with the Gülen movement. In the latest twist to a saga, a banking watchdog ordered the state insurance fund to take over the management of the bank.

The aftermath of the failed Turkey coup: Torture, beatings and rape

The Turkish government has embarked on a crackdown of exceptional proportions, targeting people it accuses of being linked to Fethullah Gülen – a Turkish cleric in exile in the US, who the government accuse of masterminding the failed coup on 15 July 2016. More than 10,000 people have been detained since the attempted coup and […]

Fethullah Gülen’s lawyers fear attacks on his life amid calls for return to Turkey

“We’re very concerned about his safety,” said Reid Weingarten, a member of Gülen’s legal team, at a press conference on Friday in Washington DC. Weingartern repeated Gülen’s denials that he was involved in the attempted coup attempt and suggested that the Turkish government’s evidence will fall far short of American legal standards. “For Mr Gülen to be involved, he would have to be acting inconsistent with everything he’s done his entire adult life,” he said.

Why Erdogan Is Soft On ISIS

Turkey’s government and the media that support it have an odd attitude when it comes to violent acts carried out by ISIS: It’s as if the “cultural/ideological dialects” of the ruling Justice and Development Party (AKP) government somehow malfunction. The government is politically accountable if ISIS actions do not stop in Turkey. Trying to cover this up with nonsense like “ISIS is the same as PKK and the Gülenists” only increases this accountability.

Today’s Zaman’s Mahir Zeynalov leaves Turkey under deportation threat

Zeynalov has been put on a list of foreign individuals who are barred from entering Turkey under Law No. 5683, because of “posting tweets against high-level state officials,” Today’s Zaman learned

The anti-thesis of radical Islam

The Hizmet movement is Turkey’s strongest civil Islamic movement, and it can employ social dynamics to resist the AK Party. The race for the local polls slated for March 30 is between the AK Party and the Hizmet movement, not between the AK Party and other political parties.

Latest News

Fethullah Gulen – man of education, peace and dialogue – passes away

Fethullah Gülen’s Condolence Message for South African Human Rights Defender Archbishop Desmond Tutu

Hizmet Movement Declares Core Values with Unified Voice

Ankara systematically tortures supporters of Gülen movement, Kurds, Turkey Tribunal rapporteurs say

Erdogan possessed by Pharaoh, Herod, Hitler spirits?

Devious Use of International Organizations to Persecute Dissidents Abroad: The Erdogan Case

A “Controlled Coup”: Erdogan’s Contribution to the Autocrats’ Playbook

Why is Turkey’s Erdogan persecuting the Gulen movement?

Purge-victim man sent back to prison over Gulen links despite stage 4 cancer diagnosis

In Case You Missed It

Operation against the Hizmet movement soon!

US Sees No Need to Choose Between Partnership With Turkey, Gulen Extradition

Dutch minister gives Turkish deputy a lesson on freedoms

Kazakh leader heads to Turkey to explain decision over Gulen schools

Media freedom in Turkey takes another blow

Peacebuilders Conference – Call for Papers:

Erdoğan’s accusation that Hizmet organized the coup attempt is noxious and absurd

Copyright 2025 Hizmet News