Bank Asya sale or liquidation to take place by end of May: Watchdog

ISTANBUL

Turkey’s Bank Asya, which was seized by the state last year, will be sold or liquidated by the end of the month, banking watchdog head Mehmet Ali Akben told reporters on May 10.

The state’s deposit insurance fund (TMSF), which now owns the bank, is in talks with institutions for a sale, said Akben, the head of the Banking Regulation and Supervision Agency (BDDK), as quoted by Reuters.

He also told reporters that the BDDK would pursue liquidation if a buyer is not found.

Within the framework of the existing legal situation, the return of the bank to its shareholders is not possible, the TMSF said in March, adding that it had given the bank a three-month deadline from Feb. 29 to find a buyer or be merged.

The government seized the assets of the Islamic lender last May, saying its financial structure and management presented a threat to the financial system.

The bank, which was owned by interests said to be close to U.S.-based Islamic scholar Fethullah Gülen, was taken over by the state amid a government attempt to liquidate the movement. Turkish President Recep Tayyip Erdoğan and the government accuse Gülen, a former ally, of trying to overthrow the government by building a network of supporters in the judiciary, police and media.