Iran-Centered Bank Closed by Decision of the Bddk
Official titleDecision of the Banking Regulation and Supervision Board dated 18/09/2026 and numbered 11572
The Banking Regulation and Supervision Agency (BDDK) revoked the operating licence of the Istanbul Türkiye Central Branch of Bank Mellat Central Tehran under subparagraph (b) of paragraph 1 of article 71 of Act No. 5411 on the Banking Law, by its decision dated 18 September 2026.
Details of the Regulation
This decision, adopted at the meeting of the Banking Regulation and Supervision Board held on 18.09.2026, means that Bank Mellat’s Istanbul branch has ceased its banking activities in Türkiye. The decision was based on subparagraph (b) of paragraph 1 of article 71 of Act No. 5411 on the Banking Law. This article is an important provision regulating the conditions under which a bank’s operating licence may be revoked. Such a subparagraph generally covers circumstances such as the deterioration of a bank’s financial structure, its inability to fulfil its legal obligations, or its loss of the conditions required to be eligible to engage in banking. However, the full reasoning for the decision was not detailed in the text. The published text merely sets out the final decision adopted. The decision was made following an examination of the relevant Board correspondence and its annexes, which also indicates that the BDDK conducted a comprehensive assessment. Upon implementation of the decision, all banking activities of Bank Mellat’s Istanbul branch in Türkiye will be completely terminated.
Questions You Might Have
- How might the revocation of the operating licence of Bank Mellat’s Istanbul branch affect other foreign banks?
- This decision constitutes a precedent demonstrating how vital regulatory compliance and conformity with the law are for other foreign banks operating in Türkiye. It emphasizes the seriousness of the BDDK’s supervisory and sanctioning powers, which may prompt other banks to review their compliance processes.
- How will depositors at the bank branch whose operating licence has been revoked access their funds?
- The liquidation process of the bank branch whose operating licence has been revoked will be carried out by the Banking Regulation and Supervision Agency (BDDK) and the Savings Deposit Insurance Fund (TMSF) under the provisions of the Banking Law. Depositors may collect their claims within the guarantee limits determined by the TMSF, while claims exceeding the limits may be pursued by applying to the liquidation desk.
Key Terms
- Faaliyet izninin kaldırılması
- It is the lawful termination, by the competent administrative authority, of an institution’s authorisation to carry out an activity because the institution acts contrary to the relevant laws or regulations or fails to satisfy certain conditions.
- 5411 sayılı Bankacılık Kanunu
- It is the fundamental legal text regulating the establishment, operation, supervision, merger, transfer, division, liquidation, and termination processes of banks in Türkiye. The statute aims to ensure the stability and security of the banking sector.
- 71 inci maddesinin birinci fıkrasının (b) bendi
- It is a specific provision of the Banking Law regulating the conditions and procedures for the revocation of banks’ operating licences. This subparagraph generally covers circumstances such as the deterioration of a bank’s financial condition, its conduct of transactions contrary to the law, or its loss of the qualification required to engage in banking.
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REGAS Commentary
This decision taken by the BDDK will directly affect all persons and entities that have commercial relations with Bank Mellat’s Istanbul branch or hold deposits with that branch. The revocation of the operating licence will cause the bank’s assets and liabilities to enter into a liquidation process, which will significantly alter depositors’ access to their funds and the fate of other financial transactions. This situation constitutes a precedent that also underscores the critical importance of regulatory compliance for other foreign banks operating in Türkiye.