Asya

An Istanbul court sent nine suspects, reportedly former employees of Islamic lender Bank Asya, to court with demands for their arrest on April 20, while it released 18 others in a probe into the financial links of Fethullah Gülen sympathizers.

Some 17 other suspects were also sent to court with demands for legal control. 

International credit rating agency Fitch has said Turkey's banking sector will not be significantly affected by the takeover of Bank Asya. The agency, however, warned of the takeover's potential negative impacts on investor sentiments towards Turkey and the perceived independence of the country's banking watchdog. 

The Turkish government has seized control of Bank Asya following a 18-month long political battle between President Recep Tayyip Erdogan and exiled Islamic cleric Fethullah Gulen - a move seen as increasing risk premium for Turkish assets a week before parliamentary elections.

Turkish stock exchange regulators temporarily stopped Islamic lender Bank Asya's shares from trading on Borsa Istanbul on June 1.

The authorities cited a decision by the country's banking watchdog, BDDK, for the complete takeover of all shares of Bank Asya by the Insurance Fund (TMSF). 

Turkish President Recep Tayyip Erdo?an and his wife Emine Erdo?an shed tears on May 13 while a student recited a patriotic, Islamic-toned poem that Erdo?an had recently read on television.

Erdo?an was in the Preza village near the Albanian capital Tirana to inaugurate a mosque during his official visit to the Balkan country. 

Turkish Islamic lender Bank Asya, whose management was taken over by regulators earlier this year, swung to a net loss of 877 million liras ($336 million) in 2014 on shrinking loans and deposits.

The bank, in which Turkish banking regulators seized a small stake last week over an alleged illegal share sale, had reported a net profit of 180.6 million liras in 2013.

The Turkish banking regulator's decision to take over the management of Bank Asya did not affect the country's credit ratings, Standard & Poor's announced Feb. 6.

"The decision to transfer management of Bank Asya to the Savings Deposit Insurance Fund does not affect the unsolicited sovereign credit ratings on Turkey," the U.S.-based credit ratings agency said in a press release.

The United States wants all governments to ensure the monitoring of corporate and financial activity is done in line with international legal standards, said deputy spokesperson of the U.S. Department of State Marie Harf on Feb. 5, upon a question about the seizure of a Turkish bank by a government body. 

I don’t consider myself authorized to write about the Bank Asya issue from the banking perspective, but indeed I have things to write about how the rule of law operates in such a case.

Bank Asya says an exclusive deal with Qatar Islamic Bank (QIB) to acquire a stake in the Turkish lender was annulled. The bank attemped earlier this year to form a partnership with QIB Islamic lender Bank Asya said an exclusive deal with Qatar Islamic Bank (QIB) to acquire a stake in the Turkish lender was annulled, opening the way for alternative suitors.