Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 04ANKARA808, MEETING WITH BANK REGULATORY BOARD CHAIRMAN

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #04ANKARA808.
Reference ID Created Released Classification Origin
04ANKARA808 2004-02-11 11:30 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ankara
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 ANKARA 000808 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR EUR/SE, AND EB/IFD 
TREASURY FOR OASIA - JLEICHTER AND MMILLS 
NSC FOR BRYZA AND MCKIBBEN 
 
 
E.O. 12958: N/A 
TAGS: EFIN PGOV TU
SUBJECT: MEETING WITH BANK REGULATORY BOARD CHAIRMAN 
 
 
REF: ANKARA 763 
 
 
1. (Sbu) Summary. In his first meeting with Econcouns, Bank 
Regulatory Board Chairman Tevfik Bilgin claimed he was fully 
independent and laid out his vision of a strong bank 
regulator, working closely with the newly-separate deposit 
guarantee agency.  Bilgin commented on lessons learned from 
the Imar Bank scandal and vowed to take a restrictive line on 
bank ownership criteria, though he was not optimistic the 
courts would reverse their recent overturning of SDIF 
interventions in Demir Bank and Kent Bank.  End Summary. 
 
 
Separation of BRSA and SDIF: 
--------------------------- 
 
 
2. (Sbu) On February 9, Econcouns and Econoffs met with 
Tevfik Bilgin, who has had something of an action-packed 
honeymoon period since being appointed Chairman of the Bank 
Regulatory and Supervisory Agency (BRSA) in November.  Until 
15 days ago, Bilgin was also the Chairman of the board of 
SDIF (Savings Deposit Insurance Fund), but now the two boards 
are separate (reftel).  Bilgin praised the separation, and 
said the new SDIF board, which will sit in Istanbul rather 
than Ankara, will benefit both from the proximity to the 
Istanbul financial center and from the distance from 
politicians in Ankara.  As for BRSA, Bilgin welcomed his 
being able to concentrate on BRSA's core functions, noting 
that he had been obliged to spend seventy percent of his time 
on SDIF issues.  He recognized, however, that SDIF and BRSA 
will need to cooperate closely. To this end, he and the SDIF 
chairman plan to meet every week, and senior BRSA staff are 
currently on loan to SDIF. 
 
 
Banking Law Revisions and Bank Ownership Criteria: 
--------------------------------------------- ---- 
 
 
3. (Sbu) Bilgin said his top priority in the coming months 
will be to update and revise Turkey's banking law.  Ideally, 
in Bilgin's view there should be two laws: one for BRSA and 
one for SDIF.  Among other improvements, the law needs to be 
harmonized with EU requirements and with Basel rules.  Though 
Bilgin claimed the existing law has strict rules about  bank 
ownership, there is room to tighten these requirements, since 
"the best way to steal from a bank is to own a bank." 
Bilgin's personal opinion is that owners of media outlets 
should not be able to own banks.  Some draft revisions have 
been passed to the Bankers' Association for comments and 
after the Association and the IFI's provide comments, the 
BRSA will ask the GOT to submit the law to parliament, 
probably sometime in the spring. 
 
 
4. (Sbu) Bilgin pointed out that Cukurova Group's recent 
attempt to get back into the sector was an issue for BRSA as 
well as SDIF, since it would involve the grant of a banking 
license.  Bilgin said that Cukurova's proposal called for 
Cayman Islands-based North Way Petroleum to be the owner of 
Yapi Kredi Bank, and the BRSA would need to have far more 
information about this group before it would consider 
awarding a banking license. 
 
 
Independence: 
------------ 
 
 
5. (Sbu) In reply to a question from Econcouns, Bilgin 
claimed he was fully independent, citing his ruling on the 
Cukurova issue.  Bilgin claimed that no one in the government 
had called him about the Cukurova case.  He also said that he 
challenged anyone to find a political appointment or a 
political credit during his time as manager of state-owned 
Halk Bank.  Of course, he had to go to Deputy Prime Minister 
Sener on issues affecting the Government, such as the 
phaseout of the deposit guarantee, but otherwise he was 
independent. 
 
 
Imar Lessons and Bilgin's Vision: 
-------------------------------- 
 
 
6. (Sbu) Bilgin laid out a vision of a strong BRSA, whose 
presence should be felt in the Banking Sector, "like Big 
Brother."  As a former sworn auditor (on-site bank 
inspector), Bilgin intended to meet frequently with the sworn 
auditors, as well as with bankers, to be sure BRSA's presence 
is felt.  Some of the lessons learned from the Imar Bank 
scandal are to conduct Information Technology audits and to 
pay greater attention to bank branches.  He also said 
inspectors need to exert their powers during audits, going to 
different bank departments without notice and demanding 
information, rather than passively remaining in a separate 
room and requesting documents.  Bilgin confided that some 
inspectors had called for regulatory intervention in Imar 
Bank as far back as 1986.  Currently, there are ten sworn 
auditors at Imar Bank plus many investigators from the 
Turkish police, but they are unable to piece together BRSA's 
pre-2003 accounts.  Bilgin does not believe there are other 
Imar-like banks in the sector, however.  Noting that BRSA has 
340 employees, 80 percent of whom have advanced degrees, he 
said he is hiring 30 new staff, of which 15 would be sworn 
auditors. 
 
 
Demir and Kent Bank Court Cases: 
------------------------------- 
 
 
7. (Sbu) Bilgin said the tenth chamber of the Danistay 
(Council of State) which specializes in BRSA/SDIF cases, has 
always ruled in favor of the regulators.  The problem with 
the Demir Bank and Kent Bank cases was with the appeal to the 
Danistay's General Assembly, which ruled in favor of the 
former owners.  Bilgin said the court ruled that the Demir 
and Kent cases were fundamentally different from other bank 
interventions, and that the Treasury should have helped Demir 
and Kent the way it helped other banks.  The BRSA is asking 
the court to review its decision but Bilgin is not 
optimistic.  Noting that Demir is now owned by HSBC, Bilgin 
surmised that the former Demir owner would come to BRSA and 
SDIF and ask for another bank, or a new banking license. 
 
 
Bank profitability, open positions, deposit guarantee 
phaseout: 
--------------------------------------------- ----------------- 
 
 
8. (Sbu) Bilgin agreed that 2004 will be less profitable for 
Turkish banks than 2003, with falling interest rates driving 
down profits on banks' government securities portfolios.  In 
this environment, Bilgin said there was intensifying 
competition among banks on credit business, particularly with 
small- and medium-sized enterprises (SME's).  Banks will have 
to develop their SME lending businesses, given that large 
corporations are able to borrow offshore. 
 
 
9. (Sbu) BRSA is closely monitoring banks' exposure to 
foreign exchange risks, using the reporting requirements 
imposed after the 1994 and 2000 crises.  Some banks are able 
to hide their positions offshore, and BRSA is required to ask 
fellow regulators in other countries to share information. 
Bilgin said this is a problem with some countries, mentioning 
Russia, Switzerland, and "some island countries." 
 
 
10. (Sbu) Bilgin does not anticipate deposits flowing to 
state-owned banks when the deposit guarantee is phased out. 
He pointed out that the guarantee will remain in place for 
deposits up to TL 50 billion (about USD 35,000) which will 
cover 95 percent of deposits.  On the other hand, the new 
regulations will mean that only deposits are covered, 
excluding other kinds of bank liabilities such as interbank 
loans.  This will lead non-deposit bank creditors to be more 
vigilant about bank creditworthiness and may lead to higher 
interest rates being charged to some banks. 
 
 
State-owned banks: 
----------------- 
 
 
11. (Sbu) Since Bilgin was recently the CEO of state-owned 
Halk Bank, econoffs inquired as to the status of the GOT's 
bank privatization plans.  Bilgin only offered his analysis 
that with the right preparation, Halk could be privatized. By 
the right preparation, he meant reducing the staff from eight 
thousand to four or five thousand, and reducing the branch 
network from 540 to 300 branches.  Bilgin claimed that Halk 
had a strong niche as lender to SME's, especially in 
Anatolia.  The privatization of Ziraat Bank, on the other 
hand, would be a different story, since Ziraat is a huge 
operation.  Separately, Bilgin said the regulators' decision 
to merge Pamuk Bank into Halk Bank was not final, and could 
be revised. 
EDELMAN