Economy Bank Asya posts $335 billion net loss

Bank Asya posts $335 billion net loss

 

Bank Asya
Bank Asya

(AA) – Islamic lender Bank Asya declared a net loss of 876.9 billion Turkish liras ($335 billion) in 2014, according to a stock exchange filing by the bank Tuesday.

The bank had posted a net profit of 180.6 million Turkish liras in 2013. 

The bank’s shares in Turkish stock exchange Borsa Istanbul, were suspended from trading due to suspicious volatility on Sept. 26.

On Feb. 4, the Savings Deposit Insurance Fund, the agency responsible for resolving failed banks, took over the management of the bank and appointed a new chief executive officer and board of directors. Regulators have found that the bank did not comply with transparency requirements with respect to disclosure of Bank Asya’s partnership structure.

Turkish banking regulators have also seized management of some preferred shares in Bank Asya held by publisher Surat Basim and construction company Forum Insaat; regulators cited irregular share transfers to a Dutch firm in January.

Bank Asya was founded by business figures who had alleged links with the U.S.-based preacher Fethullah Gulen’s “hizmet” movement, which is accused of illegal activities by Turkish judicial authorities including attempting to undermine the country’s elected government.

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