Download From the Banking Regulatory and Supervisory Agency

From the Banking Regulatory and Supervisory Agency
10.07.2001-1
PRESS RELEASE
As closely followed by the public, the Turkish banking system has been undergoing a serious
restructuring process. During this process, a series of measures aimed at the harmonization of
domestic legislation with the international standards as well as the establishment of a strong and
healthier banking structure have been taken.
In this context, instructions had been given to the banks experiencing problems in their financial
structure and to their partners to take necessary measures to improve their financial situation.
The measures stipulated in the legislation have inevitably had to be taken for banks which have
not followed the instructions and the financial structure of which have been deteriorated to an
unacceptable extent.
Within this framework, with decrees dated 07/09/2001 of 379, 381, 382, 383, and 384 by
Banking Regulatory and Supervisory Agency:
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In accordance with the 3rd paragraph of Article 14 of the Banking Law No. 4389, the
management and control of Milli Aydın Bankası T.A.Ş. (Tarişbank) and Sitebank A.Ş. have
been taken over by the SDIF. Despite the warnings, these banks did not take the measures
stipulated in the Law, and their losses in excess of their own funds passed onto external
resources and the total value of liabilities exceeded the total value of assets.
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In accordance with the 3rd and 4th paragraphs of Article 14 of the Banking Law No.4389, the
management and control of Bayındırbank A.Ş., Ege Giyim Sanayicileri Bankası A.Ş.’nin
(EGS Bank) and Kentbank A.Ş. has been taken over by the SDIF. Despite all warnings, these
banks did not take the measures stipulated in the Law, transferred their resources to share
holding capital groups in a way which would jeopardize the effective functioning of the
banks in danger, their losses in excess of their own resources passed onto external resources,
the weaknesses in their financial structure reached a level that they could not meet their
commitments, the continuation of their activities would put the rights of the owners of the
deposit accounts as well as the confidence and stability in the financial system in danger.
In accordance with the sub-paragraphs of (a) and (ab) of the paragraph 5th in the Article 14 of the
Banking Law No.4389, the SDIF has acquired the ownership of the shares of the banks whose
management and control are taken over, by paying the part of losses corresponding to their
capital.
Therefore, under the ownership of the SDIF, Bayındırbank A.Ş., Ege Giyim Sanayicileri Bankası
A.Ş. (EGS Bank), Kentbank A.Ş., Milli Aydın Bankası T.A.Ş. (Tarişbank) and Sitebank A.Ş.
will continue their normal activities and will be able to come up for their commitments. In other
words, having changed the ownership of these banks, these banks will be under the security of
the SDIF, and will continue their banking activities in all their branches.
As it is known, the announcement made to the public at the beginning of this year on the fact that
the liabilities of the banks taken over by the SDIF to the creditors and owners of saving accounts
could be used by these parties without any exception, is still valid.
Therefore the depositors and creditors of these banks have nothing to worry about. Hence, the
depositors do not need to withdraw their money and close deposit accounts before maturity.
On the other hand, with the decrees dated 07/09/2001 of 378 and 380 by Banking Regulatory and
Supervisory Board:
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In accordance with the 3rd and 4th paragraphs of Article 14 and 2nd paragraph of Article 20 of
the Banking Law No.4389, the permit for banking activities of Okan Yatırım Bankası A.Ş
has been cancelled. Despite all warnings, this bank did not take the measures stipulated in the
Law, could not meet its due commitments on time, and the total value of its liabilities
exceeded the total value of its assets.
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In accordance with the 3rd and 4th paragraphs of Article 14 and the 2nd paragraph of Article
20 of the Banking Law No.4389, the permit for banking activities of Atlas Yatırım Bankası
A.Ş has been cancelled. It was impossible to strengthen the financial structure of this bank
because of the dominant shareholder’s lack of financial power, the total value of liabilities
exceeded the total value of assets, the resources have been directly or indirectly used in favor
of partners that controlled the management and supervision of the bank, thus endangering the
safety of the operations carried out by the bank.
Those Non-deposit-taking-banks will be liquidated in accordance with general principles.
Our institution has been continuing to carry out its duty assigned by the law of supervision and
regulation on banks with a great sensitivity and attention to protect the rights of depositors, to
keep the confidence and stability in the banking sector, to enable the credit system to function
efficiently in line with the requirements of economic development. With these decisions, the
banking system will be allowed to function in a healthier manner.