ANKARA (A.A) - 19.06.2002 - The Banking Regulation and Supervision Agency (BRSA) announced on Wednesday that the Savings Deposit Insurance Fund (SDIF) undertook Pamukbank's management and control.
Releasing a statement, BRSA said that under its decision on June 18, 2002, Pamukbank's management and control were transferred to the SDIF in accordance with the third and fourth paragraphs of Article 14 of the Banking Law as it was proved that the bank had not taken the necessary measures under provisions of the banking Law, that it was impossible to strengthen its financial structure even if it had taken those measures, that total commitments had exceeded its total assets, that continuation of its banking services endangered rights of its depositors and stability and reliability of financial system, and that it was suffering a 2 billion U.S. dollars of capital deficit as of December 31, 2001.
PAMUKBANK HAS 8.6 QUADRILLION LIRAS ASSESTS AS OF SEPTEMBER 30, 2001
Pamukbank was ranked seventh among banks in Turkey and fifth among the private banks in Turkey with a 8.6 quadrillion Turkish liras (TL) as of September 30, 2001.
Pamukbank was founded on April 22, 1955 in southern province of Adana to give loan to cotton producers in southern Cukurova basin.
The bank which joined the Cukurova Holding in 1973 had many branches throughout the country in addition to its five institutional, five private and thirty-two commercial banking centers. The bank had also seven financial services offices abroad, a representation in Iran and a branch office in Bahrain. Pamukbank's total assets had been 7 billion U.S. dollars at the end of 2000.
Today, the bank had more than 3.5 million customers, 197 branches and 5,469 personnel as of September 30, 2001.
As of September 30, 2001, Pamukbank's net profit was 46 trillion 250 billion TL, paid capital was 170 trillion TL, total equity capital 870 billion 466 million TL and total assets was 6 quadrillion 618 trillion 801 billion TL.
CENTRAL BANK TO MEET PAMUKBANK'S POSSIBLE LIQUIDITY REQUIREMENT
Central Bank said that it would continue making necessary arrangements to enable the markets to function effectively.
Releasing a statement, the Central Bank said that it would closely follow the markets for completion of the process of meeting banks' capital requirement by banks' partners or Savings Deposit Insurance Fund (SDIF) if necessary in a way that does not negatively affect stability in financial system and without a problem and it would continue making necessary arrangements to enable the markets to function effectively.
Meanwhile, the bank said that it would meet possible liquidity need of Pamukbank, under specific conditions.
Under the Recapitalization Programme, the Central Bank granted the banks the right of making repo transactions through quotation method under open market transactions principles, which aim to meet possible short term liquidity requirements of those banks.
These banks can make a 1-week repo transaction with the Central Bank if they see it necessary.
Under this programme, Central Bank will meet Pamukbank's possible liquidity requirement.