Turkish bank probe casts wide net over trading

Reuters

Turkishcompetition officials made surprise visits to several private, stateand foreign banks late on Jan. 17 to analyze computers as they openeda wide-ranging probe of trading in the financial sector, according tothree bankers.

Turkey’sCompetition Authority told Reuters on Jan. 21 it was conducting“preliminary research” into banks, as it regularly does in allsectors, adding it could not say more about the effort until theprocess is completed.

Turkish media reported on Jan. 17 that the competition authority, which is part of the Ministry of Trade, was investigating possible violations in foreign-exchange, deposit, credit and brokerage services.

Turkish competition watchdog opens investigation into banks

TwoTurkish broadcasters have said that more than 20 banks are involved.

Bankerssaid it was unclear exactly what the competition officials wereinvestigating.

Onebanker said officials fanned out across Istanbul and simultaneouslyentered the lenders late on Jan. 17 afternoon. They sat down attrading desks to analyze computers, and requested more transactioninformation that is due this week, the person said.

“Theinvestigation that started on Friday [Jan. 17] was a surprise to us,”said a second banker, who also requested anonymity due to thesensitivity of the subject.

Thecompetition authority was not working with the BDDK bankingregulator, which usually does such audits and would have access tosome of the information being sought, the second banker said.

“Thisis why it raises question marks since we don’t exactly know whatthey are looking for,” the person said. “All operations by banksare being investigated.”

Thegovernment has clamped down on financial markets with a series of newrules and regulations since a currency crisis in 2018 knocked nearly30 percent off the value of the Turkish lira.

Thechanges - including curbs on foreign-exchange and reserverequirements meant to boost lending - were meant to stabilize thecurrency and kick-start a recovery from recession.

In2013, the competition authority fined 12 banks a total of 1.1 billionlira ($620 million at that time) for collusion on interest rates. In2017, it probed 13 banks over corporate loans.

Asenior banker said the latest investigation was routine, whileFinance Minister Berat Albayrak was quoted as saying on Jan. 20 hehad heard about the investigation from the sector.

“Thereis nothing to be concerned about,” Albayrak was quoted as tellinglocal reporters.