Bank Asya

The seizure of Bank Asya, the participation bank at odds with the government due to its links with Islamic scholar Fethullah Gülen, by state-run Savings Deposit Insurance Fund (TMSF) has triggered reactions, as the bank elects a completely new board.

Turkish banking authorities have seized control of Bank Asya, citing a lack of transparency.
      

Three Turkish state-run banks plan to launch Islamic units, widening the reach of interest-free finance in the majority Muslim nation, but the government is treading a fine line between promoting the sector and hurting incumbents.

Turkey is pushing ahead with plans for Halkbank, Ziraat Bank and Vakıfbank to set up stand-alone Islamic banks, known locally as participation banks.

Turkey’s stock exchange Borsa Istanbul suspended the trading of Islamic lender Bank Asya’s shares twice within one session, but the bank enjoyed 9-percent gains after the ban was lifted

Turkish stock exchange Borsa Istanbul briefly suspended the trading of Islamic lender Bank Asya shares Sept. 18, citing extraordinary movements in the exchange of the lender’s shares.

Islamic lender Bank Asya’s shares have bounced back from record lows after three straight days of losses, as investors wanting to reduce costs rushed to buy the shares of the lender, which has been at the center of a political feud.

The Turkish government has said the ball is in the court of the country’s banking watchdog, regarding Islamic lender Bank Asya’s efforts to recover its collapsed capital base.

Shares in Turkish participation bank Bank Asya plunged when trading resumed after a suspension of more than a month due to uncertainty regarding its ownership.

Islamic lender Bank Asya has announced that it will file a criminal complaint against “delinquent” public servants, in retaliation against mounting government pressure on the bank, which has been wrangling with financial constraints.

Turkey’s banking watchdog will take a closer look at the operations of the Islamic lender Bank Asya, after talks with potential buyers failed to yield results.