Turkey’s banking watchdog regulators had taken control of a small stake in embattled Islamic lender Bank Asya over what it described as an illegal share transaction.
The BDDK watchdog said Turkey’s Savings Deposit Insurance Fund (TMSF) had seized shares held by publishing company Sürat Basım and construction firm Forum İnşaat because of irregularities in the January sale of their parent company to a Dutch firm.
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As of November last year, Sürat Basım and Forum İnşaat held a total of 6.55 percent of Bank Asya, according to the bank’s regulatory filings. The BDDK statement said only preferred shares were seized, but did not specify the size of the holding.
Ratings agency Standard & Poor’s said on Wednesday incidents surrounding Turkey’s Bank Asya, which ended in its management takeover by regulators in early 2015, showed the potential for political risks to spill over into the financial system.
S&P also said a June parliamentary election should not pose a particular source of risk for Turkish banks.
