Black Swan Sticking out in Turkish Banking Sector

  • Hasan GOCEN Melikşah University
  • Halit AKTURK Melikşah University
  • Mehmet ORHAN Fatih University
Keywords: Bank Asya, Seizure, Financial Statement, Banking Regulation and Supervision Agency, Savings Deposit Insurance Fund

Abstract

This article explores different aspects of an extraordinary event in Turkish banking sector: politically motivated seizure of Bank Asya by the state. We present how political motives play a key role in such an exceptional expropriation ignoring pillars of economic freedom. The attitude of the governing Justice and Development Party (AKP) on democratization path of Turkey is presented for further elaboration to bring revealing insight. Financial statement of Asia Participation Bank Inc. (Bank Asya) is detailed to indicate absence of economic ground for seizure. Our analysis on Bank Asya along with references to similar events and their repercussions point out possible severe legal enforcements against government authorities with political more than justice concerns and prejudgment.

Published
31-05-2015
Section
Articles