RISK: Turkish banking regulators seize control of bank linked to U.S. based cleric amid feud

Appoints new CEO and board

Turkey’s banking regulator has taken over control of a bank affiliated with a moderate Islamic movement which is locked in a bitter feud with the government.

The Banking Regulation and Supervision Agency said late on Tuesday that the country’s saving deposit insurance fund had seized control of Bank Asya’s management, appointing a new CEO and board.

It cited a violation of banking regulations on transparency for the bank’s seizure.

The move comes amid a government crackdown on the movement led by U.S.-based cleric Fethullah Gulen, which President Recep Tayyip Erdogan accuses of orchestrating a corruption probe last year that targeted government members.

Turkey has issued an arrest warrant for Gulen accusing him of plotting against the government. Officials have said they will seek his extradition from the United States.

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