Economics
Turkey Raising Specter of Bank Collapse as Asya Targeted
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Turkey faces the prospect of its first bank collapse in at least a decade as Bank Asya struggles to maintain market confidence amid pressure from President Recep Tayyip Erdogan over its ties to exiled preacher Fethullah Gulen.
The Istanbul-based lender has lost 42 percent of its market value since trading resumed on Sept. 15 after a five-week suspension. Asya said yesterday it’s seeking 225 million liras ($102 million) of fresh capital from shareholders after the loss of deposits and government contracts depleted its finances.