Central Bank took over the control of some banks (old post resurrected)

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
12/12/2009 10:20

Central Bank took oer the control of Continental Bank and also Yeşilada Bank. That means that business will be normal (if possible) but under strict control of the Central Bank. So there is no need to rush and withdraw your money before maturity.



ismet

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
12/12/2009 10:31

Hi Ismet

Continental is one of the banks I think that offer higher than average interest rates on savings. My guess is now that the days of extra high interest rates are over.

AJ

frontalman



Joined: 28/02/2008
Posts: 499

Message Posted:
12/12/2009 10:44

I heard Continental lend to a high proportion of TRNC builders, many of whom are in trouble. It's no surprise they may be feeling the pinch.

newscoop


Joined: 23/12/2007
Posts: 2197

Message Posted:
12/12/2009 12:13

Ismet



Having seen what occured in dec 1999 I fear that what you are sensibly advocating may not be enough for some.



Continental banks rates were unsustainable just like Everest and the others back then.



The system should be able to handle things much better having learned a lot form that debacle.

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
12/12/2009 12:22

So what does this mean for the man in the street ?

Baydweller


Joined: 26/01/2009
Posts: 78

Message Posted:
12/12/2009 12:24

If you had your money with Continental would you be going in on Monday to withdraw it. Help

satranc


Joined: 04/04/2009
Posts: 92

Message Posted:
12/12/2009 12:28

Yes, I think I would be.

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
12/12/2009 15:22

If everyone turns up on Monday to withdraw their funds then I think it could be a long day and is it really time to panic as seen this before when a rumour went around that Is bank was in trouble 5 years ago which turned out to be false information. I am sure that Elko knows what he is talking about and has said not to rush into anything, but I did read on here once before that you can get into serious trouble for saying anything about a bank here.....!!!!!

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
12/12/2009 15:24

One thing is for sure. If you leave your money in then you will find that interest payments on your savings will be drastically reduced. I also think that there will be at least another 2 banks that will go this way.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
12/12/2009 15:25

It isn't a rumour because it's on the TRNC Central Bank website. I do not believe Elko would post a rumour.

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
12/12/2009 15:57

Scruff

Totally agree I know Elko wouldn't post a rumour. At least the central bank have stepped in which is unlike the past history we had here.

timefore


Joined: 01/08/2008
Posts: 495

Message Posted:
12/12/2009 16:19

just had a look on the central bank web site and can see no reference to continental bank!

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
12/12/2009 16:21

it is also here http://www.kibrisgazetesi.com/popup.php/cat/2/news/83049/PageName/Ic_Haberler

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
12/12/2009 16:22

http://translate.google.co.uk/translate?u=http%3A//www.kibrisgazetesi.com/popup.php/cat/2/news/83049/PageName/Ic_Haberler&hl=en&langpair=auto|en&tbb=1&ie=windows-1254

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
12/12/2009 16:22

there is no need to clutter the living of the banks as banks continue to operate that any deposits to pay and any banking transactions

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
12/12/2009 17:24

I was expecting this outcome for some time for the Continental but Yeşilada Bank was a surprise to me. I did have some inside information for some time but obviously I could not make it public.

I think the Central Bank has the powers to reduce the interest paid to those deposits for fixed periods in which case the depositors should be given the chance to withdraw their money earlier without loss of interest. I am only guessing on this aspect.

ismet

Baydweller


Joined: 26/01/2009
Posts: 78

Message Posted:
12/12/2009 17:34

What about the savings I have with them. Is there a danger of losing it all?

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
12/12/2009 18:34

elco are any other trnc banks at risk ?

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
12/12/2009 20:27

The Central Bank is doing a fine job. As I said earlier, they have taken control of Continental and Yeşilada and they have suspended the banking operations of Deniz Bank until they put in more capital to cover the risks or something like that.

ismet

girne


Joined: 14/01/2009
Posts: 438

Message Posted:
12/12/2009 23:38

Having just had a call from a customer regarding Elkos write up l immidiatley called a close associate who works for the Central bank. The rumours are true to a degree but are miss leading to all. The Bank has not gone into administration but has actually been purchased by the Central Bank. Which means the Continental Bank is now fully owned by the Central Bank. Our doors will be open for business as usual on Monday and if anyone has any queries please feel free to contact me.

jacko99


Joined: 26/06/2009
Posts: 52

Message Posted:
13/12/2009 00:06

i think girne that is what most thought that it has been taken over by the state like our problem banks in uk which are a massive liability to uk one trillion pounds according to governer of of bank of england question is can the trnc state support its problem banks the same way our government has had to to stop a systamatic collaspse of the entire uk banking system last october 2008 after all over last two years there are not many countrys that have not had a sub prime lending bank crisis and most would agree that north cyprus could never be imune from this,as long as they give plenty of liquidity and do not restrict any withdrawals and start forcloseing properly so banks can get there money back quickly things will appear to be ok but if people sense trouble and panic, but people will guess all is not well in trnc banking system cos two banks have had to be nationalised and one shut for time being lets hope turkey has stomach to shovel more money across to trnc

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
13/12/2009 00:34

re Message 12.

From TRNC Central Bank website.

http://www.kktcmb.trnc.net/ENGLISH/defaultENG.htm

Notice dated 11 Aralik 2009.

http://www.kktcmb.trnc.net/BASINACIKLA/ba-111209.html

I have learnt to find my way round this site. Even with my limited Turkish, I cope.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
13/12/2009 00:37

Sorry. I posted the English link to the website, which is very limted. Hope this will work.

http://www.kktcmb.trnc.net

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
13/12/2009 00:51

Have to say that if I had a sizeable sum of money in a TRNC bank at the moment I'd be seriously worried. Just how much is 'guaranteed' and by whom? If that guarantee had to be used how long would it be before you got your money back?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
13/12/2009 00:58

Sorry to disagree with you Hector.

I seem to remember photos of queues of Brits outside Bradford & Bingley & Northern Rock. Obviously they weren't confident about the guarantee given for UK. Savings account. I'm certain that the vast majority of UK. depositors, in the queues, had less than £30k in those accounts. There have been several Bank failures here in the TRNC in the 21st Century. The reason that you haven't heard about them, is because they have been dealt in just the same way as these latest failures will be. No point in offering a guarantee on savings if it turns out not to be credible is there?

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
13/12/2009 07:57

No doubt Elko will confirm but I think under rules introduced after the last banking crisis, private banks here in Cyprus must keep 40% of deposits on deposit and not lend it out. This is 4 times the norm in UK and America where (obviously) only 10% is required to be kept for liquidity purposes.



A small point, those advocating a run on the banks could be breaking the law... so be very sure of your ground before saying any bank is in difficulties because we've had that before and it turned out to be tosh.



Those concerned might find themselves up before the judge and we know how justice is meted out here!

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
13/12/2009 08:12

http://translate.googleusercontent.com/translate_c?hl=en&ie=windows-1254&langpair=auto|en&u= http://www.kktcmb.trnc.net/BASINACIKLA/ba-111209.html&tbb=1&rurl=translate.google.co.uk&usg=ALkJrhjkPOXdXH3_sSD55enxYtPnKQsqKw

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
13/12/2009 09:03

The last thing we need is a run on a bank or banks here by folks panicking without good cause. As far as I am aware the banks and the TRNC economy are much sounder than most these days, not to mention the south!

Don't forget, TRNC is funded by Turkey who might be reluctant to fund huge public service pay rises but would not wish to see everything collapse.

Geoff

Famagusta

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/12/2009 09:15

Girne (msg. 20),

You should know by now that I always try to give accurate information and I am afraid in my view it is you and not me who is giving out misleading information. Here is the relevant part of the official announcement by the Central Bank:

"KKTC Merkez Bankası Yönetim Kurulu bugün (11.12.2009) yaptığı toplantıda Bankalar Yasası’nın 37/3 ve 37/4 maddesi gereğince Continental Bank Ltd. ile 37/3 maddesi gereğince Yeşilada Bank Ltd.’ın yönetim ve denetiminin Tasarruf Mevduatı Sigortası ve Finansal İstikrar Fonu’na devredilmesine karar vermiştir."

My translation:

"TRNC Central Bank Board of Governors has decided at its meeeting today (11.12.2009) in accordance with the Banks Law provisions 37/3 and 37/4 to transfer the Administration and Control of Continental Bank Ltd. and in accordance with 37/3 Yeşilada Bank Ltd. to TMSF (The Deposits Insurance and Financial Stability Fund)".

So these banks have not been nationalised in the strict sense. Only their administration and control has been taken over. My original post is accurate except that I did not mention TMSF in order not to confuse things. For all intents and purposes TMSF and CEntral bank are the same thing except in legal terms.

ismet

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/12/2009 09:23

Girne (msg. 20)

In my original post (msg. 1) I did not say that Continental Bank has gone into administration (i.e. declared insolvent). Please read my original post carefully and try to understand it properly before you accuse me of writing misleading information. I take such accusations seriously. I think an apology should be in order but of course it is entirely up to you.

ismet

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
13/12/2009 10:23

please look at elco 2 re ''most helpful member'' this is what elco is and we all should be more than pleased he helps us all. distorting his posts is not helpful at all on this board .

Secrectcove


Joined: 06/12/2009
Posts: 59

Message Posted:
13/12/2009 10:30

elco has only repeated what was in kibris news paper yesteday.

timefore


Joined: 01/08/2008
Posts: 495

Message Posted:
13/12/2009 11:49

I have to say that I think that message 31 is the most irresponsible posting on this thread. Just remember what 'failure to hold ones nerve' has done in all past problem periods, it has justed hastened and deepened the situations.

jacko99


Joined: 26/06/2009
Posts: 52

Message Posted:
13/12/2009 13:24

i agree ELKO you never said those two banks had gone into administration i understood that they had been effectively taken over by the state ,and by virtue of the fact were in trouble(ie bad management)and for all intense and purposes they have been nationalised with hopefully the liquidity support of the state of trnc(sponsered by turkey) i think girne should should correct that statement quickly before things get out of hand we apreciate your vital imformation and never has been concidered misleading your legal knowledge is crucial to many people in trnc

TheSaints



Joined: 28/01/2009
Posts: 1369

Message Posted:
13/12/2009 13:30

Hi Elko



When I first read your posting I just took it to mean that the Central Bank had took over the two banks in a buy out or merger.

jinyx


Joined: 21/08/2009
Posts: 161

Message Posted:
13/12/2009 13:41

does anyone remember the fiasco with the B.C.C.I. bank a few years ago in the uk ?. This was a bank based in asia but made itself look , for all intents and purposes, very western. When other uk banks were paying an interest rate of 7% at the time, BCCI were paying out 11%. You guessed it, they went tits up!. I remember all the asians ( 98% of their customer base) crying at the front doors of one branch on the day it was announced.



Point is? yes, beware, if it looks too good to be true, it is. Most of these are banana republic banks, not to be trusted.

girne


Joined: 14/01/2009
Posts: 438

Message Posted:
13/12/2009 15:06

Having watched BRT news today it has been announced that Yesilada bank accounts will be transferred to the Continental bank and the bank will no longer be in the private banking sector but goverment run.

All accounts will run as normal and interest accrued monthly/3 monthly/6monthly and yearly will be as usual.

So on Monday it will be busines as normal for the Kibris Continental Bank.

jacko99


Joined: 26/06/2009
Posts: 52

Message Posted:
13/12/2009 15:38

hardly buisness as usual at the bank with goverment running it!!judge by how this lemon rebublic runs itself, lets hope they will have plenty of liquidity and start getting ruthless with defaulters and and siezing there assets(ie not mortguaged land with sales contracts registered)and liquidating so bank can restore balance sheets also offer more realistic interest rates 12 and 13 % hardly sustainable on lira when base rates 6.25 no wonder government had to take control somebody can not add up

kiria


Joined: 15/01/2009
Posts: 19

Message Posted:
13/12/2009 16:40

Can someone please translate into clear English the page posted in message 27?

http://www.kktcmb.trnc.net/BASINACIKLA/ba-111209.html

I don't understand even a single sentence from the google translation, and altavista does not translate Turkish.

Thanks in advance.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/12/2009 16:52

Kiria (msg. 40)

I translated the most relevant part in msg. 29.



Girne (msg. 38),

I am not sure about the accuracy of this post. I checked the web pages of BRT and the Central Bank and there is nothing about it. I believe that the Continental Bank and Yeşilada Bank cannot join their accounts together without the approval of their respective General Assemblies. Even if the Central Bank and its Agency the TMSF took over their assets (which they have not done so far), they would not have the legal powers to combine the assets of these two banks. Anyway, these points are too technical and it seems a little beyond you. I hope in the future you are more careful before you unjustly accuse me of misleading posts. Its a shame that you have not shown the dignity to apologise so far.

ismet

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
13/12/2009 16:57

Ismet (Elko 2) was as always very careful in what he wrote - you have yto read properly and not cause panic by implying what has not been said.



In my opinion - At this moment you have more cause for worry on your finance and funding in the UK in general than in the TRNC.

jacko99


Joined: 26/06/2009
Posts: 52

Message Posted:
13/12/2009 17:13

last message are you trying to say that all deposits in uk are more at risk than the deposits in north cyprus with its track record of banking pull the other one ,GIRNE you need to retract what you said about elko misleading, people, you coulld cause serious trouble for him and your bank if you do not correct your statement by buisness opening time or there will be a lot ofpeople wondering what the hell is going on they seam to be covering up a banking crisis that has spilled over from dubai and the collaspse of some arab pryamid scam 10 days ago

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
13/12/2009 18:48

Jacko99 Msg 43



Jock - I think you know what I'm getting at - with LloydsTSB being conned by HMG along with excessive bonuses for many in public service and many in the banks added to which you can take on the general poor state of UK banking the stock market and pension schemes etc in some state of turmoil and many would agree that in the UK we are still going into recession.

kiria


Joined: 15/01/2009
Posts: 19

Message Posted:
13/12/2009 19:09

Elko,

Thanks, but they seem to be talking about the REASONS why the central bank took action. i.e. they talk about 2 million USD, which I don't understand. A more detailed translation is needed in order to estimate if it is a localized problem or a serious problem in the banking system.

Unlike the central banks of the UK or the USA, the TRNC central bank can't print TL, and I try to form my OWN opinion as to the extent of the problem, if it could have spread to other banks, and the ability of the central bank to handle it.

Thanks for understanding, and if it is not too much trouble, could you translate at least the more significant parts?

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/12/2009 20:07

Kiria (msg. 45),

I do appreciate your desire to form your own opinion but unfortunately I do not have the time and neither the inclination to translate the whole announcement by the chairman of Central Bank.

The 2 million dollar USA refferred to Denizbank and as from 1st January 2008 their assets fell below this mark and they were not able since then to top it up with cash. The Chairman stressed that as from Monday 14th December the two banks (Continental and Yeşilada) will carry on their business as normal including accepting new deposits and giving out new credits.

ismet

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
13/12/2009 20:13

Any reassurances being given out by the TRNC Central Bank or the government that all is well and all money deposited is guaranteed safe?



I'd still be worried but that's just me.....

boban


Joined: 16/09/2010
Posts: 3

Message Posted:
16/09/2010 16:22

I would like to know about Denizbank in N Cyprus. I have money in that bank, but noone answeres the Phone, and their website is 'out of date' . Have they opened the new branches? What is going on with Denizbank in N. Cyprus? Any info would be of help.

girne


Joined: 14/01/2009
Posts: 438

Message Posted:
17/09/2010 13:57

İf you want to contact Deniz bank re accounts as l said they have totally gone. You will need to contact the Central Bank in Lefkosa take your pass book and passport of the account holders. Their number is 0392 228 3216 (landline) Good Luck

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
17/09/2010 14:07

Can you close this thread scared the #### out of me until I realizes the date it was first posted.

Amerillo


Joined: 17/09/2010
Posts: 69

Message Posted:
17/09/2010 14:16

who bought continental bank do we know ??

dalartokat


Joined: 14/04/2008
Posts: 734

Message Posted:
17/09/2010 20:34

Amerillo try this link and maybe you can find out.



http://www.northcyprusonline.com/North-Cyprus-Online-Private-Banks-Continental... - Cached

dalartokat


Joined: 14/04/2008
Posts: 734

Message Posted:
17/09/2010 20:36

Sorry Amerillo the link did not come out how I wanted. It showed all the branches and its phone nos and fax nos. etc.

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
17/09/2010 21:13

I think we should all keep our money in the HSBC from now on !





High interest = High risk ...............................................you choose!

nilmoney


Joined: 29/12/2008
Posts: 122

Message Posted:
18/09/2010 12:07

If people do decide to transfer funds please spare a thought for fellow ex pats and only support those banks that are not threatening to auction homes



many thanks