| Lebanon's Bank Audi has informed the Banking Regulation and Supervision Agency (BDDK) that it plans to invest $10 billion in Turkey, according to reports in the Turkish media over the weekend. (source) | |||||||
| The BDDK announced on Friday that it has granted a banking license to Bank Audi, the first financial institution to establish a subsidiary in Turkey in 12 years, partly as a result of strict regulations put in place by the BDDK due to the domestic financial crisis of 2001. Reports say that Bank Audi's promise to make $10 billion in investments in Turkey lies behind the BDDK's decision to issue the license. The BDDK investigated the bank for six months before making its decision. The bank has agreed to establish its subsidiary with $300 million of share capital and has also informally agreed to bring $10 billion into the country, which they have been seeking an opportunity to invest, saying they would be pleased to invest it in Turkey because of the country's strong economy. “With a population of 72 million and a gross domestic product [GDP] of $763 billion, growing on average by 4.1 percent per annum in real terms, Turkey is an attractive emerging market with strong potential. Our new subsidiary will particularly target the fast-growing Turkish middle corporate segment,” a statement from the bank said. BDDK suggested to Bank Audi that taking over a bank might be a better option, enabling it to operate in Turkey more easily, when Bank Audi first proposed the establishment of a bank in Turkey one-and-a-half years ago. Since then, Bank Audi has been trying to secure a banking license, after talks with five banks failed to result in an agreement. The new bank will have five partners: Bank Audi SAL-Audi Saradar Group, Audi Saradar Private Bank SAL, Raymond W. Audi, Samir N. Hanna and Freddie C. Baz. The total number of banks in Turkey will increase to 49 with the addition of Bank Audi, which will be the 21st largest bank in the market. The largest shareholder in Bank Audi is Deutsche Bank's US branch, Deutsche Bank Trust Company Americas. Source : http://www.todayszaman.com/news-261481-bank-audi-to-invest-10-billion-in-turkey.html - Oct 31, 2011 note - website bank audi - group structure Bank Audi (Egypt) In March 2006, Bank Audi sal acquired the “Cairo Far East Bank sae”, an Egyptian bank with a network of 3 Commercial Banking branches and one Islamic Banking branch. The latter’s name was subsequently changed to Bank Audi sae, a fully-owned subsidiary of Bank Audi sal with a capital of US$ 100 million. Bank Audi sae’s action plan hinges mainly on the development of Commercial and Correspondent Banking activities, along with extensive Retail Banking activities based on Bank Audi’s acquired expertise in the field. Set to become the Group’s second largest entity outside Lebanon, Bank Audi sae aims at achieving a 3% market share in the coming years by engaging in several important partnerships. In parallel, the Bank is working on establishing a strong domestic franchise through an extensive branch network that now includes 30 branches offering high-quality products and services with attractive benefits. The Bank’s financial philosophy is to increase sales of its products and services, boost its operating margins and manage its capital intensity within very strict control procedures. This ensures a better immunity for Bank Audi sae and helps it provide the best banking services and products to individuals and institutions. Source : http://www.banqueaudi.com/Pages/GroupStructure.aspx?pic_url=ASGGroupOverview as accessed 01.11.2011 |
