Transfer Of Pamukbank To S.D.I.F.

ANKARA - Council of State Administrative Cases Department General Assembly on Friday stopped the execution of the decision of the Banking Regulation and Supervision Agency (BRSA) to the Savings Deposit Insurance Fund (SDIF). The General Assembly annulled the decision of Council of State Chamber 10 in this respect.
Council of State Administrative Cases Department General Assembly unanimously annulled the decision of Chamber 10 and stopped the execution of the decision of BRSA.
The General Assembly said BRSA did not sufficiently examine the demand to transfer Pamukbank to Yapi Kredi Bankasi.
BRSA earlier 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.