Bank Asya

Bank Asya was established in October 24, 1996 with its head office in Istanbul, as the sixth private finance house of Turkey. Bank Asya opened its first branch in Altunizade, Istanbul on 24 October 1996. The opening ceremony was held with an official ceremony and was attended by then Deputy Prime Minister Tansu Çiller, State Minister Abdullah Gül, Istanbul Metropolitan Mayor Recep Tayyip Erdoğan, and İhsan Kalkavan, Chairman of the Board of Directors of Asya Finans. The company's name, which had been previously "Asya Finans Kurumu Anonim Şirketi" (Asya Finance Incorporated Company), was changed into "Asya Katilim Bankasi Anonim Şirketi" (Asya Participation Bank Inc.) on December 20, 2005.

Bank Asya, with an initial capital of TRY2 million and paid up capital of TRY900 million, had a multi-partnered structure based on domestic capital. At the end of 2009, Bank Asya’s total assets reached TRY14 billion. Bank Asya rose by 47 places in the “Top 1000 World Bank Ranking” of “The Banker” Magazine in 2010, rising to 473 from 520. At the same time, Bank Asya ranked 403rd on “The Banker’s Top 500 Banking Brands”. Bank Asya has also become the largest participation bank in Turkey.

Bank Asya carried out its activities with 182 branches, 2 national and 1300 foreign correspondent banks besides the head office units as of May 2011.

The bank has been strongly tied to the controversial Gülen movement, led by the Islamic cleric and preacher Fethullah Gülen, and is widely considered to be founded and operated by his followers. By the end of 2013, the relationship between the Gulen movement and the ruling AK Party soured, following the 17-25 December Corruption investigations that implicated President Erdogan’s family members as well as those of 4 ministers in his cabinet, Erdogan declared a war on the Gulen Movement, and claimed that the corruption investigations were a coup against him to throw down his government. After that, the Gulen movement was declared a national security threat. Soon after, Erdogan declared the Gulen movement “parallel state” and a national security threat based on the assumption that the prosecutors and police officers involved in the operations received orders from Gulen.

On 18 September 2014, President Erdoğan spoke  at the Turkish Industry and Business Association, TÜSİAD meeting. Bank Asya was on Erdoğan's agenda without explicitly mentioning its name: "Yesterday, the main opposition leader accused us of working to bankrupt a bank. That bank is already bankrupt."

Consequently, Bank Asya lost a large fraction of its deposits and its lucrative contracts with government agencies. Its net income plummeted 81% in the second quarter of 2014. Its stock is currently suspended from trading by BIST (Istanbul Stock Exchange), due to uncertainties regarding its ownership structure. Two separate acquisition deals (by Qatar Islamic Bank and by Turkish state owned Ziraat Bank) fell apart. Finally, on August 25, 2014, Moody's downgraded the bank with the statement "During this period, the bank's net income declined by 81% compared to last year. Additionally asset quality also deteriorated. These sharp deterioration trends in financial fundamentals resulted in lowering the bank's rating."

On 22 July 2016, the Banking Regulation and Supervision Agency (BDDK) cancelled Bank Asya's banking permissions as part of the 2016 purges.

To detail this process:

- On 4 February 2015, the Banking Regulation and Supervision Agency (BRSA= BDDK in Turkish) decided that 63 per cent of the privileged shares determining the board of directors of Bank Asya will be used by the Savings Deposit Insurance Fund (SDIF= TMSF in Turkish). Thus, the BRSA gained the authority to control the controlling shares of Bank Asya.

- The BRSA decided that the Savings Deposit Insurance Fund (SDIF) will control 63 percent of the privileged share that determines the management of Bank Asya on the grounds that it violates the rule in the Banking Law that the institution should have a transparent and open shareholding structure and organisation chart that will not hinder effective supervision. The Banking Regulation and Supervision Agency announced that it has decided that 63 per cent of the privileged shares will be used by the SDIF. "Bank Asya's lack of transparent and open shareholding structure" was cited as the reason for this decision. It was also reported that SDIF officials conducted an inspection at the bank's headquarters.

- With Decision No. 6318 of the Banking Regulation and Supervision Agency published on 29 May 2015, Bank Asya was transferred to the SDIF. The decision was published in the Official Gazette dated 30.05.2015 and numbered 29371. The decision read:

"As a result of the audits conducted in relation to Bank Asya (the Bank) within the scope of the Banking Law No. 5411 (the Law), it has been decided to transfer the Bank's shareholding rights, excluding dividends, and the management and supervision of the Bank to the Savings Deposit Insurance Fund in accordance with the provision of subparagraph (b) of the first paragraph of Article 71 of the Law for the purpose of partial or complete transfer, sale or merger, provided that the loss is deducted from the capital of the existing shareholders (it is revealed that the continuation of its activities poses a danger to the rights of deposit and participation fund holders and the confidence and stability of the financial system)."

At this stage, the SDIF did not yet revoke Bank Asya's banking licence and stated that it did not pose any risk to depositors.

- Muhiddin Gülal, President of the Savings Deposit Insurance Fund (SDIF), announced on 26 February 2016 that they plan to sell Bank Asya by 29 May, and that they will liquidate the bank if it cannot be sold.

According to The Banking Regulation and Supervision Agency (BRSA= BDDK in Turkish) board decision published on the website of the Banking Regulation and Supervision Agency and in the Official Gazette on 23 July 2016, Bank Asya's operating licence was cancelled.

- On 16 November 2017, with the decision of Istanbul 1st Commercial Court of First Instance dated 16.11.2017 and numbered 2017/41 E., Bank Asya was declared bankrupt.

- In the indictment prepared by the Istanbul Chief Public Prosecutor's Office on 8 April 2021 with a request for confiscation and sent to Istanbul 24th High Criminal Court, it was requested to decide on the confiscation (transfer to the state treasury) of Bank Asya's belongings and earnings used in the commission of the intentional offence according to Articles 54 and 55 of the Turkish Penal Code.

After Erdogan’s party Justice and Development Party Government's restrictions in Turkey on Gulen movement and Bank Asya since 2013 and after coup attempt on July 15, 2016, Bank Asya customers were exposed to a number of violation of rights. After the coup attempt on July 15, 2016, Gulen movement was accused of coup plotting and declared as a terrorist organization by Erdogan regime, and then the criterion of being a partner, employee, and customer of Bank Asya was accepted as an important factor for the membership of the organization by politicians of the government and members of the judiciary. People, not blamed of any offenses were accused of being members of a terrorist organization because they only worked in the bank, had an account or used bank's credit card and other banking services and were subjected to criminal investigation. However, in the decision of the UN Human Rights Committee dated 01/06/2019, it was decided that depositing money into Bank Asya would not be a crime.

History
1996
 * Bank Asya was founded on October 24 in Istanbul, Turkey

1997


 * 14 branches were opened in 10 cities (branches include Kadiköy, Merter, Şişli, Güneşli, Pendik(İstanbul), Ulus (Ankara), İzmir, Bursa, Konya, Gaziantep, Kayseri, Eskişehir, Antalya and Aydin)

1998
 * Bank Asya launched credit card activities
 * Established online banking correspondence with all Yapı Kredi branches
 * Sultanhamam branch was opened

1999
 * Bank Asya became subject to Turkish Banking Law

2000
 * Online Banking became available to the public
 * 9 branches were opened (branches include Ostim (Ankara), Diyarbakir, Erenköy, Ümraniye, Fatih, Gaziosmanpaşa (İstanbul), Gebze, Erzurum and Samsun)

2001
 * The Union of Private Finance Houses was founded
 * The Regulation for Foundation and Activities of Private Finance Houses began operations on September 20

2002
 * 3 branches were opened (branches include Denizli, Adapazari and Beylikdüzü)
 * Private Finance Houses Private Current and Savings Accounts Safety Fund Regulation began operation on September 18
 * Installment credit cards were launched
 * ATMs were put into service
 * Correspondent banking relations were established with Türk Ekonomi Bankasi and Denizbank branches

2003
 * 17 branches were opened
 * Correspondent banking relation was established with Şekerbank branches
 * Tax collection authority was granted by the Ministry of Finance
 * Nationwide facility for credit card payment and money transfers by Asya Finans customers through on-line PTT branches was initiated
 * Bank Asya became a member of VISA on October 24

2004
 * Alo Asya (444 4 888) Telephone Banking was put into operation on January 1 and March 17, for retail and corporate customers, respectively
 * 19 branches were opened
 * The organizational structure of the Head Office was changed and operations began being carried out by 24 units

2005
 * The company name, which had been previously "Asya Finans Kurumu A.Ş.", was changed into "Asya Katilim Bankasi A.Ş."
 * Membership agreement was signed with MasterCard on May 18
 * Bank Asya launched chip credit card activities
 * Bank Asya became registered in the presence of Trade Register Office of Istanbul on December 20
 * Paid-up capital has increased from TL 120 million to TL 240 million
 * 11 branches were opened

2006
 * On May 12, Bank Asya shares began trading at the (İstanbul Stock Exchange) ISE with the code of ASYAB
 * Paid-up capital has increased from TL 60 million to TL 300

2007
 * 26 new branches were opened. Bank Asya branches have increased to 118
 * New Head Office building in Ümraniye commenced service on October 1

2008
 * Bank Asya became title sponsor for the First League of Turkish Football Federation
 * AsyaCard DIT, the most extensive, off-line credit card of Europe, and AsyaPratik DIT, the first pre-paid bank card of Turkey, were brought into use
 * The first transportation project with which AsyaCard can be used has been put into service and AsyaCard began to be used for transportation in Kahramanmaras
 * Paid-up capital has increased to TL 900 million
 * Number of branches has increased to 149

2009
 * Bank Asya was displayed as the bank having the most effective performance in the "Top 1000 World Banks" list of financial magazine The Banker.
 * The first contactless prepaid bank card of Turkey, DIT Pratik, ranked first in 2009 category
 * A strategic cooperation agreement was signed between Bank Asya and ICD, one of the corporations of Islamic Development Bank (IDB) and Bank Asya went in a partnership with Senegal - based Tamweel Africa Holding SA
 * Assets reached TL 11,6 billion; increasing 43% compared to the same period of the last year
 * Reaching 22,2% profit rate Bank Asya has become the most profitable interest - free bank of Turkey for last three years
 * Number of branches has increased to 158

2010
 * Second Murabaha syndication - 250 million USD
 * Bank Asya ranked 403 in The Banker‘s Top 500 Banking Brands listing the leading names

2011
 * 300 million USD murabaha syndication

Işık Sigorta

 * 65.42% ownership - non-life insurance company with 183 million TL in assets.

TUNA REIT (Real Estate Investment Trust)

 * Established in 2009
 * Development of residential and saleable real estate and generation of rental revenue from its own real estate portfolio.
 * STRATEGY: IPO in 3 years

TAMWEEL Africa Holding

 * Bank Asya and ICD (Islamic Corporation for the Development of the Private Sector), a subsidiary of the Islamic Development Bank jointly carry out interest-free banking activities in West Africa
 * Bank Asya owns a 40% stake and ICD 60% in Senegal-based Tamweel Africa Holding SA
 * Tamweel Africa Holding SA owns 4 banks in Niger, Senegal, Guinea, and Mauritania
 * Plans for opening 2 new banks in Benin and Mali
 * Partnership could expand up to 22 countries in Africa