World Bulletin / News Desk

Turkey's Banking Regulation and Supervision Agency (BDDK), the country’s banking watchdog, has ruled for the takeover of Bank Asya by the Savings Deposit Insurance Fund (TMSF).

The complete takeover announced late Friday follows the bank’s partial transfer to TMSF in February.

Bank Asya is a participation bank affiliated with Pennsylvania based cleric Fethullah Gulen, whom Turkish authorities accuse of leading a clandestine “parallel state” within state institutions to undermine the Turkish government.

The BDDK said in its statement that Bank Asya’s transfer to TMSF came “as a result of investigations within scope of banking law.”

It said “troubles in [Bank Asya’s] financial structure, administration and operations pose risks for the depositors, as well as the security and stability of the financial system."

The TMSF said in a separate statement Friday Bank Asya’s banking license had not been canceled at this stage. "Savers -- local or foreigner -- who have engagements with the Turkish banking system do not need to worry about the situation,” the fund said.

In March, the BDDK announced that the TMSF had taken control of a stake in the bank owned by publishing company Surat Basim and construction company Forum Insaat, after the sale of their parent company to a Dutch firm in January was considered as contrary to banking law.