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

Islam, terrorism and the media

We unfortunately live in an unfair world. Injustice is so ubiquitous that we can categorize it based on our neighborhood, our city, our region, our country and the world. Any kind of injustice, discrimination or otherization — such as social injustice, class injustice, inequity in income distribution and a lack of equal opportunities in education, business and social mobility — may rear its ugly head at any moment in our daily life. Not only the cases of social injustice we encounter in our daily life, but also the sentiments of rage and revolt stemming from national or international injustice may trigger reactions that are against the nature of people who normally have psychological integrity.

Fethullah Gülen: Even democracy needs a metaphysical dimension

Rainer Hermann There is no obstacle to democracy in Islam, says Fethullah Gulen. However, even democracy needs a metaphysical dimension. As there are Christian, Jewish and Buddhist democrats, there could also be Muslim democrats. Western World is disputing with Islam. Muslims also have some responsibility for this attitude: the Taliban is practicing the ‘stoning sentence’ […]

Religion as a force for peace

ŞAHİN ALPAY One of the great advantages of Turkey, surely, is the dominance of religious scholars who have promoted conceptions of Islam promoting peace, socio-economic development and democracy. In this context, contributions of Said Nursi (1878-1960), a Kurd from Bitlis, and Fethullah Gülen, a Turk from Erzurum, are surely exceptional. In Turkey hopes for an […]

Terrorist organization, you say

He is 73 years old and is known as a respected scholar who has been studying Islamic exegesis. He is well-known in academia. He was promoted to associate professor in the field of Islamic exegesis back in 1977. He served as head of the exegesis department at the faculty of theology at Erzurum’s Atatürk University, conducted research in Paris Sorbonne, taught at the faculty of Islamic studies at the Islamic University of Madinah, was the chair of exegesis studies at Marmara University and conducted academic studies at International Islamic University of Malaysia. He is the author of 13 books and hundreds of articles.

Closing down prep schools and calling it ‘transformation’

BÜŞRA ERDAL, İSTANBUL Describing the government’s plan to close down the prep schools as a “transformation” is nothing more than saying, “I’m not going to say ‘close down prep schools,’ but I’m going to close them down.” The draft law in question will affect millions of students and their parents, but the debate on prep […]

Ahmet Şık’s book and Ergenekon’s media campaign (1)

Within Turkey’s ultranationalist camps, supporters of the Kemalist system have already extended their support to the Ergenekon network. So there is a sizable community in Turkey that believes whatever is said by a suspect in the Ergenekon case. Emre Uslu, Wednesday 28 December 2011 The Odatv trial has finally begun after months of waiting. The […]

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

Enes Kanter calls Turkey’s Erdoğan ‘Hitler of our century’ after airport detainment

The message at the dialogue dinner: There’s no alternative to one Nigeria

Afghan Students, families baulk at Turkey taking over schools

Fethullah Gülen on Islam’s Relationship and Compatibility with Democracy

Global event held to foster harmony

Turkish PM: State of emergency will continue until Gülen movement completely wiped out

Brazil’s top court denies extradition of [Gulen-linked] Erdogan opponent

Copyright 2025 Hizmet News