The economic, political and sociological developments experienced in our country during the last twenty years are evidence to the fact that the SDIF constitutes an important element of our country’s financial safety net. The economic crises suffered during the 90s and the early 2000s transformed SDIF into a Resolution authority, in addition to its role as a deposit insurer. SDIF, which undertook the task of resolving 25 banks simultaneously, also put weight on recovery operations in order to reduce the cost of this crisis experienced in the banking sector to the country’s economy.
Having spent its first 12 years as an independent Organization experiencing cases that remain unmatched in the world in the fields of deposit insurance, bank resolution and recovery operations, the SDIF expanded its mission following the treacherous coup d’état attempt that took place in our country in 2016, after which the SDIF was also assigned the task of carrying out receivership duties over companies that were found to be connected with terrorist organizations.
With an eye to its renewed mission, the SDIF adopted the vision of “Becoming a World Brand in Deposit Insurance and Resolution”in 2018, setting its sights on catching up with world standards in matters that are within its field of operations. In the field of deposit insurance, which is the reason for SDIF’s founding and primary duty, SDIF attained a strong position with the approximately TRY 41 billion (USD 7 billion) deposit insurance reserves it holds, as well as by its ratio of 8.07% of deposit insurance reserves to insured deposits. The SDIF also always keeps track of the developments in the fields of deposit insurance and bank resolution in the world, maintains its cooperation, coordination and sharing of knowledge/experience in international platforms such as IADI - EFDI, and continues its efforts of harmonization with new international standards.
The corporation is now closer to completing its bank resolution and recovery works, which have been occupying an important place on the SDIF’s agenda since the late 90s. Along with Bank Asya, whose operating license was revoked in 2016, 26 banks in total were transferred to the SDIF to date, and the SDIF made its best efforts to ensure that these banks were resolved with the least cost to the public. The efforts directed at recovering the cost of these banks to the public resulted in USD23 billion in collections, and a debt repayment of around USD12.4 billion was made to the Undersecretariat of Treasury from these collections along with an advance repayment of USD 1.4 billion to the CBRT. Moreover, payments were made to other public corporations/institutions, particularly to the Ministry of Finance, of USD5.6 billion, and of USD1.9 billion to other corporations/institutions. The SDIF expects to achieve a further collection of half a billion Dollars from the files it holds.
Another item that has been on the SDIF’s agenda since late 2016 has been the healthy management and resolution of the companies for which it has been acting as receiver. Aware of the effect the outcomes of this task will have on the national economy, the SDIF is working meticulously to sustain the commercial lives of these companies, as well as their contribution to the economy.
In cases where it is found out that they are not “sustainable” in their current condition due to their financial status, shareholding structure, the market conditions or other problems, any adverse impacts on the country’s economy are avoided through their sale or liquidation. Preventing employees of such companies from being affected, and avoiding any negative impacts on their employment are also among the SDIF’s priority targets.
As of March 2019, the SDIF is commissioned as receiver for a total of 924 companies/businesses in 39 provinces of Turkey. Moreover, the SDIF has been appointed as receiver for less than 50% of the shares of 127 companies, as well as for the estates of 120 real persons. The total asset size of these companies is approximately TRY 57.8 billion, their total turnover is TRY 31.7 billion, and their total equities are worth of TRY 21.3 billion. 44,317 people are employed by these companies. A 29% growth was achieved in the assets of these companies since the SDIF was put in charge.
The SDIF has made extraordinary efforts with all its personnel in order to properly perform each task assigned to it, has kept up with change, and has followed developments closely. It will continue to perform all tasks assigned to it, exercising the same degree of awareness and diligence.