The move by Turkish watchdog came after it was discovered that the bank failed to meet some legal criteria.
Hurriyet Daily News cited the BDDK as saying that Turkey’s Savings Deposit Insurance Fund (TMSF) held shares owned by construction firm Forum Construction and publishing company Sürat Printing because of several irregularities in the January sale of their parent company, Kaynak Holding to a Dutch firm.
Forum Construction and Sürat Printing, as of November, held 6.55% of Bank Asya, according to the bank’s regulatory filings.
The bank has been tattered by Turkey President Tayyip Erdogan’s attempts to wipe out Gulen’s religious movement, which has added a fear that political interventions are damaging Turkey’s financial system.
Hurriyet Daily News cited S&P as saying: "As for domestic political risks, we do not see the June 7 parliamentary elections as a particular source of risk for banks.
"However, the incidents in 2014 surrounding Bank Asya, which ended with the regulatory action against it in early 2015, illustrate the potential for political risks, or the perception of it, to directly or indirectly spillover into the financial system."
Image: Turkish regulator seizes Bank Asya’s shares. Photo courtsey of Salvatore Vuono via freedigitalphotos.net.
