The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Turkey - Foreign creditors get Clean Hand's protection

The number of banks seized by the government in Turkey has recently risen to 10 but foreign banks still manage to elude having their fingers burned.

Metin Munir


So far the new Banking Regulation and Supervisory Agency (BRSA) has cautiously protected foreign creditors by choosing the vastly more costly route of taking over banks rather than liquidating them.


But, as officials privately warn, this will not go on forever. Once the Agency becomes established and the new ground rules are understood by everyone, banks will either sink or swim - with all their liabilities outside private saving accounts.


According to BRSA officials: "There may be other weak banks in the system but we hope to keep them outside the agency. When the supervisory mechanism is securely in place and so long as there is no ill intent, fraud or corruption in the picture, the agency will work with the existing management at these banks to restore their financial health."


Says another source: "There is no doubt that the agency and its staff command much respect in the banking community and they inspire much confidence. Our findings suggest that we can rely on the experience and integrity of the Board."


But it is not totally for the love of foreign banks that Turkey has been taking over the failed banks.






You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree