Top Turkish economy staff invtervene in Dutch banking dispute – Hurriyet Daily News

Font Size: Larger|SmallerWednesday, March 2, 2011KAD?FE ?AH?NISTANBUL – MilliyetTurkish banks active in the Netherlands are continuing operations, because they have strong capital in the country, says Ergun ?zen, the general manager of GarantiBank. H?rriyet photo
Turkish banks active in the Netherlands are continuing operations, because they have strong capital in the country, says Ergun ?zen, the general manager of GarantiBank. H?rriyet photo

Turkish authorities including the economy minister and Central Bank governor are in contact with Netherlands’ authorities to resolve the recent banking dispute between the two countries, Milliyet newspaper reported Wednesday.


Turkish authorities including Economy Minister Ali Babacan, Central Bank Gov. Durmu? Y?lmaz and Tevfik Bilgin, head of the Banking Regulation and Supervision Agency, or BRSA, are involved in the efforts to resolve the dispute.


The banking regulator in the Dutch country is imposing extremely high capital adequacy ratios implemented by authorities in the Netherlands against Turkish lenders active there, the Turkish media reported earlier last week.


Speaking to Milliyet, Garanti Bank International NV’s general manager Bahadir Ate? said the authorities “are requiring that Turkish banks calculate the risk of a sovereign default as 100 percent.”


“We are seriously under pressure on capital ratios,” Ate? said.


Aykut Demiray, the deputy general manager of Turkiye ??bank, said the Netherlands’ central bank is intent on upholding the tough new rules. “If they force Turkish banks more, the lenders will orient toward other countries,” he said.


The issue raised a discussion in the Netherlands, he added. “There are some people in the Netherlands who say that the Turkish banks are important for the country and question if it is the right thing to force the Turkish banks to leave the country by implementing harder rules.”


“They say the risk of a sovereign default is 100 percent. Then, going down from there, they accept net risk as 45 percent,” said Ergun Ozen, the general manager of Garantibank. “They require us to cut this amount from our capital. This hits our capital adequacy ratios.”


“Despite the fact that we are seriously affected by this, we continue with our operations as we have strong capital in the country,” he said.


Other Turkish banks active in the Netherlands include Akbank International N.V., Anadolubank Nederland N.V., HB Bank Demir Halk Bank N.V., DHB Bank Demir Halk Bank N.V., The Economy Bank TEB NV, Yap? Kredi Bank Nederland NV and Credit Europe Bank N.V.

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