Turkey's banking watchdog seizes more Bank Asya shares

ANKARA

Turkish banking regulators have seized Wednesday several of Bank Asya’s shares, alleging illegal transfers of said shares. 

Turkey's banking watchdog, BDDK, said Savings Deposit Insurance Fund (TMSF) had taken control of a stake in the bank owned by publishing company Surat Basim and construction company Forum Insaat after the sale of their parent company to a Dutch firm in January was considered as contrary to banking law.

According to the statement from the state fund, Surat Basim owned 6.74 percent and Forum Insaat owned 9.63 percent of privileged shares, which grant their owners a say in the management of the bank. 

On Feb. 3 the banking watchdog handed over the control of 63 percent of Bank Asya’s privileged shares to BDDK over alleged irregularities regarding the partnership structure of the bank.

Bank Asya was set up by businessmen allegedly linked to U.S.-based cleric Fethullah Gulen, who is accused by the government as the leader of a "parallel state," a purported group of Turkish bureaucrats and senior officials embedded in the country's institutions, including the judiciary and police. They have been accused of attempting to undermine the Turkish government.