Alfa Group, one of the shareholders in the Turkish GSM operator Turkcell, is planning to engage in new investments in Turkey. Evgeny Dumalkin, the vice-president of Altimo (the telecoms branch of Alfra Group), stated that the firm is planning to enter into the Turkish banking sector depending on its future position in Turkcell.
Altimo and Russian Alfa Bank are among the subsidiaries of Alfa Group; and Alfa Bank is currently active in Russia, Belarus, Kazakhstan, the UK, the US, Holland and the Ukraine with 465 branches and 17,000 employees.
Dumalkin added that the group is considering a number of options such as establishing a new bank or acquiring a bank with an existing banking license. He also stated that Alfa Group is also known for its investments in the finance and retail sectors and is considered an “expert” in these fields.
This year another Russian Bank, Sberbank, successfully bought Denizbank, the eighth largest bank in Turkey, for US$3.5 billion. But although Alfa Group’s recent statement shows an increasing interest in the Turkish banking sector, the Turkish Banking Regulation and Supervision Agency strictly controls the banking sector and is not very keen on issuing new banking licences.
Insurance branches of Yapı Kredi Bank up for sale
Yapı Kredi Bank, which announced that it was planning to sell its insurance branches Yapı Kredi Sigorta and Yapı Kredi Emeklilik, has sent proposals to foreign investment banks to act as mediators in the sale. The proposal calls on the banks to examine the insurance companies. Yapı Kredi had initially planned to sell its shares in its insurance companies back in 2008, but all the companies interested in the sale withdrew their offers following the 2008 economic crisis. It is expected that their recent transaction will be successfully carried out, thanks to the current positive economic environment in Turkey.
Istanbul to become a financial center
Osman Akyüz, the general secretary of The Participation Banks Association of Turkey, has stated that Turkey could become a financial center not only for conventional finance but also for the Islamic finance market. This target can be achieved by establishing infrastructure for technology and regulations, and also depends on the participation banks’ future performance.
The latest regulations that came into force this summer regarding lease certificate issuances may accelerate the realization of this target.
Ali Ceylan is a partner at Baspinar & Partners Law Firm. He can be contacted at
[email protected]
.