A new set of rules on the foundation and acquisition of banks has been issued by Turkey’s Banking Regulation and Supervision Agency (BDDK), reports the Turkish daily news.. Commentators say they are intended to serve as a means to clean out the country’s banking sector, and to find viable buyers for the 10 bailed-out banks currently administered by the Deposit Insurance Fund.
The BDDK is the official organization that has the authority to approves and denies bank mergers and acquisitions
According to the new set of rules, stakeholders of 10 percent or more of any of the bailed-out banks or other financial institutions that are liquidated will be barred from creating or acquiring banks. The same restriction is extended to other parties that were involved in the management of the bailed-out banks.
The new rules also stipulate that any capital a prospective bank owner commits to put up to create or acquire a bank should have been secured free of all controversy. Applicants must be able to justify the source of the capital they are using.
The BDDK’s guidelines also clearly state what character references a prospective bank owner should show. Not only should they be moral and virtuous, should not have been implicated in controversial dealings, nor should they have filed for bankruptcy or been sentenced to prison. – (Albawaba-MEBG)
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