Turkish agency fines 2 foreign banks for cartel

Turkish Competition Authority's official investigation has revealed that foreign banks operating in the field of corporate loans violated the law.

In a statement, the agency stated that ING Bank and Royal Bank of Scotland have been fined for exchanging information related to credit terms such as interest rates and credit periods, as well as information related to other financial transactions."

An administrative fine amounted to around 21.1 million Turkish liras ($5.33 million) have been imposed on ING Bank, while Royal Bank of Scotland's Istanbul Main Brunch was fined nearly 66,500 Turkish liras ($17,000), it added.

Although the Bank of Tokyo-Mitsubishi UFJ Turkey was also found violating the related act, the agency did not impose any fine due to "active cooperation" of the bank.

Citibank, Deutsche Bank, HSBC Bank, JPMorgan Chase Bank Istanbul Turkey Branch, MerriII Lynch, Societe Generale Istanbul Turkey Main Branch, Standard Chartered, Sumitomo Mitsui Banking Corporation, Turk Ekonomi Bankasi and UBS AG were the other banks investigated by Turkish Competition Authority.

In Turkey, nearly 50 state/private/foreign lenders, including deposit banks, participation banks, development and investment banks had over 11,500 domestic and overseas branches with almost 210,000 employees at the end of the third quarter this year.

Turkey's banking sector's net profit reached 37.2 billion Turkish liras ($10.5 billion) between January and September this year, while it posted 37.5 billion Turkish liras ($10.7 billion) net profit last year.

Source: Anadolu Agency