Turkey’s Bank Asya is set to shut down 80 branches, which includes30 in Istanbul, following a withdrawal of TRY5.8bn ($2.61bn) between September 2013 and June 2014.
The branch closures will lead to layoff of nearly 1500 employees, reports Daily Sabah.
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The lender has now reduced credit card limits of individual clients by three-quarters without informimg them.
Bank Asya, which operates with a total of 280 branches, had been included by the Banking Regulation and Supervision Agency (BDDK) under Article 70 of the Banking Code owing to its deterioration in financial structure and liquidity deficit.
At present, BDDK is responsible for the online supervision of the bank, and reports have revealed loans amounting to millions of Turkish lira hidden by a flotation technique showing a capital adequacy ratio much higher than the real value.
Reports have also revealed that the bank has been repaying loans to customers who delay their debts, and has also concealed bad debt worth TRY735m by not showing them on the balance sheet.
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