Turkey to liquidate Bank Asya if sale not agreed within three months
March 01 2016 09:34 PM
KRISHNAN
Pedesterians pass a Bank Asya branch in Istanbul. The government seized the assets of the Islamic lender last May, saying its financial structure and management presented a threat to the financial system.

Reuters/Istanbul

Turkey’s Bank Asya will not be returned to its original shareholders after being seized by the government last year, the deposit insurance fund that now owns the bank said, adding that it would pursue liquidation if a buyer is not found within three months.
The government seized the assets of the Islamic lender last May, saying its financial structure and management presented a threat to the financial system.
Founded by followers of US-based Islamic cleric Fethullah Gulen, Bank Asya is one of more than 20 Gulen-related companies, including some opposition media outlets, that have been hit in a government crackdown.
President Tayyip Erdogan has accused Gulen, a former ally, of trying to overthrow the government by building a network of supporters in the judiciary, police and media. Gulen, whose adherents run schools, broadcasters and newspapers, denies the charges. The cleric has lived in self-imposed exile in the US for more than a decade.
“Within the framework of the existing legal situation, the return of the bank to its (shareholders) is not possible,” the Deposit Insurance Fund (TMSF) said yesterday, adding that it had given the bank a three-month deadline from February 29 to find a buyer or be merged.
“If this is not possible, its liquidation will come on to the agenda,” the TMSF said.
Last week the chairman of the TMSF told reporters it was in talks to sell the bank.
The campaign against Bank Asya started almost two years ago when its depositors, including state-owned companies and institutions and foreign fund managers, withdrew 4bn lira ($1.36bn), amounting to about 20% of its deposits, eroding its earnings and capital base.



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