İnterbank

İnterbank A.Ş. was a defunct Turkish bank whose institutional history traced back to the Banque de Salonique, or Selanik Bankası T.A.Ş., established in 1888 in Thessaloniki. The bank later relocated to Istanbul in 1910, reflecting the changing political and commercial environment of the late Ottoman and early Turkish periods. It continued under the ownership of French controlling shareholders until 1969, when it was sold and renamed Uluslararası Endüstri ve Ticaret Bankası. The institution subsequently became associated with Çukurova Holding, which took control several years before the bank adopted the shorter Interbank name in 1990. In 1996, Çukurova sold its majority stake to Nergis Holding, the group associated with businessman Cavit Çağlar. This ownership change placed the bank within a broader industrial and financial conglomerate and increased its exposure to related-party business activity. The bank's collapse was tied to alleged excessive transfers to companies connected with Nergis Holding. Prosecutors alleged in 1999 that, during 1998, Interbank had transferred more than $650 million to Nergis-related companies, exceeding legal limits on intra-group transfers. The reported amount owed by Nergis to Interbank was said to exceed $1.1 billion. The allegations became part of a wider Turkish banking crisis involving weak governance, concentrated ownership, connected lending, and state intervention in troubled financial institutions. On 7 January 1999, the Turkish government's Savings Deposit Insurance Fund, commonly known as TMSF or SDIF, took control of Interbank. The bank was later merged with Etibank on 2 July 2001 and entered liquidation. The successor arrangements continued through the TMSF-controlled banking structure: Etibank was subsequently placed under Bayındırbank, which was wholly owned by the fund, and Bayındırbank was renamed Birleşik Fon Bankası A.Ş. by a TMSF decision dated 7 December 2005. The legal aftermath continued after the bank's takeover and liquidation. Cavit Çağlar and others associated with Nergis were initially acquitted in 2002, but that acquittal was appealed. In 2004, Çağlar and other defendants were sentenced to three years and ten months in connection with bank fraud relating to Interbank. The case made Interbank a notable example of the risks created by related-party lending and concentrated ownership in Turkey's pre-2001 banking environment. The Interbank brand is no longer an operating bank brand.

İnterbank's institutional lineage began with the Banque de Salonique, known in Turkish as Selanik Bankası T.A.Ş., which was founded in 1888 in Thessaloniki. The bank relocated to Istanbul in 1910. Its early history therefore belongs to the evolution of banking institutions operating across the late Ottoman and early modern Turkish commercial environment. In 1969, the institution was sold by its French controlling shareholders and received the name Uluslararası Endüstri ve Ticaret Bankası. Several years later, it was taken over by Çukurova Holding. Under that ownership, the bank was renamed Interbank A.Ş. in 1990. The shortened name provided the identity under which the institution became known during the final phase of its independent operation. Çukurova sold its majority stake to Nergis Holding in 1996. Nergis was associated with businessman Cavit Çağlar, and the change placed Interbank within a holding-company structure in which related industrial and financial interests were closely connected. The bank subsequently became the subject of allegations concerning the scale of transfers to companies associated with its controlling group. In June 1999, prosecutors alleged that Interbank had transferred more than $650 million to Nergis Holding companies during 1998. The transfers were alleged to have exceeded legal limits applying to intra-group transactions. The amount reportedly owed by Nergis to Interbank was stated to be more than $1.1 billion. These allegations formed the central scandal associated with the bank and illustrated the governance and solvency risks of concentrated related-party lending. The Turkish government took Interbank into the Savings Deposit Insurance Fund on 7 January 1999. The intervention occurred before the bank's eventual legal disappearance and reflected the use of state-controlled resolution mechanisms for distressed Turkish banks. Interbank was merged with Etibank on 2 July 2001 and went into liquidation. The institutional chain did not end with the merger. Etibank was later merged under Bayındırbank, a bank wholly owned by the TMSF. On 7 December 2005, the TMSF decided to rename Bayındırbank Birleşik Fon Bankası A.Ş. These later arrangements represented the consolidation of failed or resolved banking assets under the fund's administration rather than the continuation of Interbank as an independent commercial brand. The criminal proceedings connected with the bank continued after the takeover. Cavit Çağlar and others associated with Nergis were initially acquitted in 2002. The government appealed, and the acquittal was reversed. In 2004, Çağlar and other defendants received sentences of three years and ten months for bank fraud relating to Interbank. The case remains associated with the broader history of Turkey's banking-sector problems before and around the 2001 crisis, particularly connected lending, weak oversight, and the financial vulnerability of banks controlled by large holding groups.

• 2005

  Bayındırbank renamed Birleşik Fon Bankası

  [1]İnterbanken.wikipedia.org

  The TMSF decided to rename Bayındırbank, the later institutional successor in the resolution chain, as Birleşik Fon Bankası A.Ş.

• 2001

  Merger and liquidation

  [1]İnterbanken.wikipedia.org

  İnterbank was merged with Etibank on 2 July and entered liquidation.

• 1999

  State takeover

  [1]İnterbanken.wikipedia.org

  The Savings Deposit Insurance Fund took control of İnterbank on 7 January.

• 1996

  Nergis Holding acquired majority ownership

  [1]İnterbanken.wikipedia.org

  Çukurova Holding sold its majority stake to Nergis Holding, associated with Cavit Çağlar.

• 1990

  Adopted the Interbank name

  [1]İnterbanken.wikipedia.org

  The institution was renamed Interbank A.Ş. after its takeover by Çukurova Holding.

• 1969

  Renamed Uluslararası Endüstri ve Ticaret Bankası

  [1]İnterbanken.wikipedia.org

  After its sale by French controlling shareholders, the bank adopted the name Uluslararası Endüstri ve Ticaret Bankası.

• 1910

  Relocation to Istanbul

  [1]İnterbanken.wikipedia.org

  The predecessor bank relocated from Thessaloniki to Istanbul.

• 1888

  Banque de Salonique founded

  [1]İnterbanken.wikipedia.org

  The institutional predecessor of İnterbank, Banque de Salonique or Selanik Bankası T.A.Ş., was established in Thessaloniki.

A Turkish commercial bank serving corporate and industrial customers before its state takeover and liquidation. Its historical identity was shaped more by ownership changes and its role in the Turkish banking system than by a documented consumer-facing brand proposition.

• Banking service

  Commercial banking

  İnterbank operated as a Turkish bank with corporate and commercial banking functions. Available reference material identifies the institution and its ownership history but does not provide a detailed archived product catalogue, customer segmentation breakdown, or named account products.

• Credit

  Corporate lending and related-party finance

  The bank's historical activities included lending and transfers involving corporate and industrial interests. Its documented legacy is particularly associated with alleged transfers to companies linked to Nergis Holding, rather than with a surviving branded lending product.

• Retail and commercial banking

  Deposits and banking services

  As a bank operating in Turkey, İnterbank provided banking services that included deposit-taking and credit-related activities. The supplied reference does not specify individual deposit products, branch formats, or consumer campaigns.

• 2004

  Fraud convictions involving Nergis associates

  Cavit Çağlar and other people associated with Nergis were sentenced to three years and ten months for bank fraud connected with İnterbank after an earlier acquittal was overturned on appeal.

  Source

• 1999

  Alleged excessive transfers to Nergis Holding companies

  Prosecutors alleged that more than $650 million had been transferred from İnterbank to companies associated with Nergis Holding during 1998, beyond legal limits for intra-group transfers. The reported Nergis-related debt to the bank exceeded $1.1 billion. The allegations contributed to the bank's state takeover and subsequent resolution.

  Source

Read more

• 2005

  Renaming of Bayındırbank as Birleşik Fon BankasıStrategy

  Background

  After the resolution chain involving Etibank and Bayındırbank, the TMSF continued consolidating distressed-bank assets under its control.

  Action taken

  The TMSF decided on 7 December 2005 to rename Bayındırbank as Birleşik Fon Bankası A.Ş.

  Aftermath

  The change marked a later successor arrangement rather than a revival of the İnterbank brand.

  Source

• 2001

  Merger with EtibankM&A

  Background

  Following the state takeover and the bank's resolution under the TMSF, the authorities reorganized the institution within the state-controlled banking structure.

  Action taken

  İnterbank was merged with Etibank on 2 July 2001 and entered liquidation.

  Aftermath

  Etibank was subsequently merged under TMSF-owned Bayındırbank, continuing the consolidation of resolved banking assets.

  Source

• 1999

  Transfer of İnterbank to the Savings Deposit Insurance FundOther

  Background

  The bank faced allegations involving excessive related-party transfers and substantial obligations attributed to companies associated with its controlling group.

  Action taken

  The Turkish government's Savings Deposit Insurance Fund took control of İnterbank on 7 January 1999.

  Aftermath

  The bank was later merged with Etibank and liquidated.

  Source

1. 1İnterbanken.wikipedia.org