View source for Halkbank

{{Short description|Turkish bank}}
{{About|the Turkish bank|the Turkmen bank|Halkbank (Turkmenistan)}}
{{Use dmy dates|date=July 2022}}
{{Infobox company
| name = Halkbank
| logo = Halkbank logo.svg
| logo_size = 250px
| image =
| image_size = 250px
| image_caption = Halkbank's current headquarters in [[Ataşehir]], [[Istanbul]], [[Turkey]].
| type = [[S.A. (corporation)|Anonim Şirket]]
| traded_as = {{IMKB|HALKB}}
| foundation = {{Start date and age|1933}}
| location = Finanskent Mah, Finans Cd No: 42/1, 34760
| hq_location_city = [[Ataşehir]], [[Istanbul]]
| hq_location_country = [[Turkey]]
| locations = 1,006 <small>(2019)</small>{{sfn|Halkbank Annual Report|2019|p=5}}
| key_people = Süleyman Recep Özdil <small>(Chairman)</small><br>Osman Arslan <small>(CEO)</small>
| industry = Banking
| products = [[Financial services]], credit cards, [[Retail banking|consumer banking]], [[Commercial bank|corporate banking]], [[investment banking]], [[mortgage loan]]s, [[private banking]]
| revenue = {{increase}} [[US$]]14.23 billion (2024/9)
{{sfn|Halkbank Annual Report|2023|p=149}}
| operating_income = {{decrease}} US$2.47 billion (2023){{sfn|Halkbank Annual Report|2023|p=149}}
| net_income = {{decrease}} US$622 million (2023){{sfn|Halkbank Annual Report|2023|p=149}}
| assets = {{increase}} US$88.03 billion (2024/9)
| equity = {{increase}} US$4.81 billion (2023){{sfn|Halkbank Annual Report|2023|p=4}}
| owner = [[Turkey Wealth Fund]]
| num_employees = 18,967 (2019){{sfn|Halkbank Annual Report|2019|p=5}}
| parent =
| subsid =
| homepage = {{URL|halkbank.com.tr}}
| footnotes =
}}
'''Halkbank''' ({{lit|People's Bank}}) is a Turkish bank, first incorporated in 1933 as a [[Public bank|state-owned bank]]. After growing throughout much of the twentieth century, it began absorbing smaller-sized state banks around the turn of the millennium. Halkbank is now a publicly traded company, although the majority stakeholder remains the Turkish government.<ref name=":1" /> Halkbank is a bank that offers vehicle loans, housing loans, consumer loans and commercial loans.<ref>{{Cite news|last=Gazete|first=Banka|date=26 November 2021|title=Halkbank, Ziraat Bankası ve Vakıfbank kredi faiz oranlarını yeniledi!|page=https://gazetebanka.com/|work=Gazetebanka|url=https://gazetebanka.com/halkbank-ziraat-bankasi-ve-vakifbank-kredi-faiz-oranlarini-yeniledi-iste-guncel-kredi-faiz-oranlari/11418/|access-date=26 November 2021|archive-date=26 November 2022|archive-url=https://web.archive.org/web/20221126124659/https://gazetebanka.com/halkbank-ziraat-bankasi-ve-vakifbank-kredi-faiz-oranlarini-yeniledi-iste-guncel-kredi-faiz-oranlari/11418/|url-status=dead}}</ref> A number of scandals and controversies involving the bank emerged in the 2010s, some of which culminated in arrests of its executives.
== History ==
Halkbank was incorporated in 1933 and began offering services in 1938. Between 1938 and 1950, it was a credit union whose purpose was to provide tradesmen and artisans loans on favourable terms to promote economic growth in Turkey. In 1950, it began opening branches and granting loans to customers. In 1964, Halkbank embarked upon an ambitious program in which its capital was increased and established a nationwide network of branches. Halkbank absorbed several smaller-sized failed state banks in the 1990s and early 2000s: Töbank in 1992, Sümerbank in 1993, Etibank in 1998 and Emlakbank in 2001. One of the major turning points for Halkbank has been the acquisition of Pamukbank in 2004. After this, it underwent a significant restructuring process to prepare for privatization. On 10 May 2007, 24.98% of Halkbank's shares were sold in a public offering and listed on Istanbul Stock Exchange. On 16 November 2012, the percentage of listed shares increased to 48.9%.<ref name=":1">[https://www.halkbank.com.tr/en/about-halkbank/97/history "Halkbank In Brief"] {{Webarchive|url=https://web.archive.org/web/20200412162716/https://www.halkbank.com.tr/en/about-halkbank/97/history |date=12 April 2020 }} Retrieved 12 April 2020.</ref> Halkbank's head office was moved from Ankara to Istanbul in June 2015. On 24 February 2017, publicly owned shares of Halkbank were transferred to [[Turkey Wealth Fund]].
[[File:Halkbank.jpg|thumb|Halkbank's former headquarters in [[Ankara]].]]
==Iranian oil trading controversy==
Halkbank was a link in the chain to finance [[Iranian Revolution|Iranian]] petroleum interests following U.S.-led nuclear sanctions.<ref>Hart, Matthew, [https://www.theglobeandmail.com/globe-debate/all-that-glitters-is-not-enriched-uranium/article15545454/ "All that glitters is not enriched uranium"], ''Globe and Mail'', 21 November 2013.</ref> In March 2012, Iran was stopped from using the international money transfer system [[SWIFT]].<ref name=dec29dt/> Halkbank seems, between March 2012 and July 2013 while the UN sanctions regime was in place prior to the November 2013 [[P5+1]] agreement, to have purchased some $13bn worth of gold on the open market.<ref name=dec27zaman/> The sanctions prevented Iran from being paid in dollars or euros, but gold was never mentioned in the sanctions regime, and therefore this loophole allowed gold to be used to fund the purchase of Iranian petroleum products.  Halkbank allowed the middlemen of Iran to buy gold with their Turkish lira, and that gold found its way back to Iranian coffers.<ref name=dec27zaman/> One investigation found that US$2bn in gold bullion (about 36 tonnes) was flown from Turkey to [[Dubai]] in August 2012 alone.<ref name=dec29dt/> In defending its decision not to enforce its own sanctions, the Obama administration insisted that Turkey only transferred gold to private Iranian citizens. The administration argued that, as a result, this wasn't an explicit violation of its executive order.  Iranian Ambassador to Turkey [[Ali Reza Bikdeli]] recently praised Halkbank for its "smart management decisions in recent years [that] have played an important role in Iranian-Turkish relations."<ref name=dec27zaman/> Halkbank stated that there were no sanctions against trading precious metals with Iran until 1 July 2013.<ref name=dec29dt/>
Halkbank also had [[Indiana|Indian]] accounts that in 2013 traded with Iran: "India now owes Iran $5.3 billion in oil debt.<!-- here was a new line (that did not display a paragraph break, mirroring paragraph break from the source, but I think not important. --> India is planning to pay Iran $1 billion per month – that is $12 billion annually – also through Halkbank."<ref name=dec29dt/>
===2013 corruption investigation===
In December 2013, Halkbank's CEO [[Süleyman Aslan]] was arrested and charged with taking [[Bribery|bribes]]<ref>{{cite web|title=Turkey's PM warns he could expel ambassadors over graft probe arrests|work=The Telegraph|date=21 December 2013|url=https://www.telegraph.co.uk/news/worldnews/europe/turkey/10532349/Turkeys-PM-warns-he-could-expel-ambassadors-over-graft-probe-arrests.html|author= AFP|author-link= Agence France-Presse| access-date=2013-12-22}}</ref> from, among others, [[Reza Zarrab]], an Iranian-Azeri businessman who had taken Turkish citizenship under the name [[Sarraf]].<ref name=dec29dt/> Police reportedly discovered shoeboxes containing US$4.5&nbsp;million in the home of Aslan.<ref name=dec29dt>Johnson, Glen, and Richard Spencer, [https://www.telegraph.co.uk/news/worldnews/europe/turkey/10540423/Turkeys-politicians-gold-dealer-and-the-pop-star.html "Turkey's politicians, gold dealer and the pop star"], ''[[The Daily Telegraph]]'', 29 December 2013.</ref><ref name=dec27zaman>[http://www.todayszaman.com/newsDetail_getNewsById.action?newsId=335096 "Iran's Turkish gold rush"], {{webarchive|url=https://web.archive.org/web/20131230232001/http://www.todayszaman.com/newsDetail_getNewsById.action?newsId=335096 |date=30 December 2013 }} Sunday's Zaman, 27 December 2013.</ref> Scores of police officials have reportedly been dismissed because their investigations made politicians uncomfortable.  The chain of police command was changed so that politicians would be informed of, and could frustrate, police activities.  This caused an injunction to be heard in the court system, who blocked the change.  A prosecutor was dismissed.<ref name=dec29dt/>
The arrest, which came along with many other arrests of officials allied with then-Prime Minister [[Recep Tayyip Erdoğan]] (now [[President of Turkey]]), is seen as part of a power struggle between the prime minister and exiled Turkish opposition leader [[Fethullah Gülen]].<ref>{{cite news|url=http://www.jpost.com/Middle-East/Erdogan-blames-international-groups-for-corruption-scandal-that-rocked-Turkey-335727|title=Erdogan blames 'international groups' for corruption scandal that rocks Turkey|date=21 December 2013|work=[[The Jerusalem Post]]|agency=Reuters|access-date=22 December 2013}}</ref><ref>{{cite news|url=https://www.reuters.com/article/us-turkey-erdogan-gulen-idUSBRE9BF0AB20131216|title=Enigmatic Turkish cleric poses challenge to Erdogan's might|author=Humeyra Pamuk|date=16 December 2013|publisher=[[Reuters]]|access-date=22 December 2013}}</ref>
Oya Özarslan, of the corruption watchdog [[Transparency International]], is worried:  "[R]ecent changes in the police forces and public prosecutors breaking out this scandal as well as the changes in the regulation of the police forces leave a number of question marks."<ref name=dec29dt/>
===U.S. conviction of executive===
In March 2017, deputy head of the bank Mehmet Hakan Atilla was arrested<ref name=TheHill>{{cite news|author=Stafford, Edward G.|url=https://thehill.com/blogs/pundits-blog/international-affairs/327670-what-tillersons-meeting-in-turkey-reveals-about/|title=What Tillerson's meeting in Turkey reveals about Trump's America First (opinion)|newspaper=[[The Hill (newspaper)|The Hill]]|date=6 April 2017}}</ref> by the U.S. government for conspiring to evade sanctions against Iran by helping [[#2013 corruption investigation|Zarrab]] "use U.S. financial institutions to engage in prohibited financial transactions that illegally funneled millions of dollars to Iran".<ref>{{cite web|url=https://www.justice.gov/usao-sdny/pr/turkish-banker-arrested-conspiring-evade-us-sanctions-against-iran-and-other-offenses|title=Turkish Banker Arrested For Conspiring To Evade U.S. Sanctions Against Iran And Other Offenses|agency=[[United States Department of Justice|Department of Justice]], [[U.S. Attorney's Office]] – [[Southern District of New York]]|date=28 March 2017}}</ref> Zarrab was [[Reza Zarrab#Arrest in the United States|arrested]] in Miami, Florida, in March 2016.<ref>{{cite news|title=Iran's Turkish connection – Golden squeal|url=https://www.economist.com/news/europe/21700422-did-officials-help-evade-sanctions-golden-squeal|newspaper=[[The Economist]]|date=9 June 2016}}</ref> In Ankara in March 2017, U.S. Secretary of State [[Rex Tillerson]] said there was no link between the Turkish request for extradition of [[#2013 corruption investigation|Gülen]] and the arrest of Atilla and that both cases would proceed in conformity with the law.<ref name=TheHill/> Atilla's trial commenced in New York City federal court in November 2017, with Zarrab agreeing to testify after reaching a plea deal with prosecutors.<ref>{{cite news|url=https://www.nbcnews.com/news/us-news/gold-trader-zarrab-will-be-star-witness-iran-sanction-busting-n824351|title=Gold trader Zarrab will be star witness in Iran sanction-busting trial|publisher=NBC News|date=28 November 2017}}</ref> According to ''[[The New York Times]]'', the prosecution of Atilla and others has "sent tremors" through Turkish political circles. Erdoğan has sought, unsuccessfully, to persuade American officials to drop the case, and the state media has been downplaying coverage of the trial.<ref>{{cite news|last1=Weiser|first1=Benjamin|title=Reza Zarrab Testifies That He Bribed Turkish Minister|url=https://www.nytimes.com/2017/11/29/world/europe/reza-zarrab-turkey-trial.html|newspaper=The New York Times|date=29 November 2017}}</ref> Zarrab testified that the sanctions-evasion operation had Erdoğan's knowledge and approval, as well as that of Erdoğan's son-in-law, Selçuk Erdoğan.<ref name=":0">{{Cite news|last1=Lipton|first1=Eric|last2=Weiser|first2=Benjamin|date=29 October 2020|title=Turkish Bank Case Showed Erdogan's Influence With Trump|language=en-US|work=The New York Times|url=https://www.nytimes.com/2020/10/29/us/politics/trump-erdogan-halkbank.html|access-date=2020-11-01|issn=0362-4331}}</ref>
In early 2018, Atilla was convicted on five of six counts against him, including bank fraud and conspiracies, and acquitted on one count after four days of jury deliberation. [[Reza Zarrab|Zarrab]] was the prime prosecution witness in the seven days of trial testimony. Atilla's sentencing is scheduled for April 2018 and the bank fraud count alone carries a maximum sentence of 30 years in prison.<ref>{{cite news|url=https://www.nytimes.com/2018/01/03/world/europe/turkey-iran-sanctions-trial.html|last1=Weiser|first1=Benjamin|last2=Gall|first2=Carlotta|title=Banker From Turkey Is Convicted in U.S. Over Plot to Evade Iran Sanctions|newspaper=The New York Times|date=3 January 2018}}</ref> Seven other co-defendants are still at large.<ref>[https://www.justice.gov/usao-sdny/pr/former-turkish-minister-economy-former-general-manager-turkish-government-owned-bank "Former Turkish Minister Of The Economy, Former General Manager Of Turkish Government-Owned Bank, And Two Other Individuals Charged With Conspiring To Evade U.S. Sanctions Against Iran And Other Offenses"], Department of Justice U.S. Attorney's Office Southern District of New York, 6 September 2017. Retrieved 3 January 2018.</ref> In August 2018, Turkey and the United States were negotiating over the imprisonment by Turkey of pastor [[Andrew Brunson]] and neared an exchange which would have allowed Atilla to serve out his term "at home". But the Turkish foreign minister, per one report citing other reports, asked American officials "to kill any investigation into Halkbank". After that, for the time, "the deal collapsed".<ref>[https://www.economist.com/europe/2018/08/11/turkeys-diplomatic-crisis-is-hastening-an-economic-one "Turkey’s diplomatic crisis is hastening an economic one"], ''The Economist'', 9 August 2018. Retrieved 23 August 2018.</ref>
In 2019, U.S. senator [[Ron Wyden]] launched an investigation.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2019-10-24/mnuchin-asked-by-top-senate-democrat-to-detail-turkey-dealings|title=Mnuchin Asked by Top Senate Democrat to Detail Turkey Dealings|newspaper=Bloomberg.com|date=24 October 2019|via=www.bloomberg.com}}</ref>
=== Connection to the Geoffrey Berman-William Barr scandal ===
In 2016, President Erdoğan asked then-Vice-President [[Joe Biden]] to remove [[Preet Bharara]], the [[United States Attorney for the Southern District of New York|U.S. attorney for the Southern District of New York]] who would go on to indict [[Reza Zarrab|Zarrab]].<ref name=":0" /> Following continued lobbying by President Erdoğan, [[Donald Trump]] did fire Bharara in 2017, and eventually replaced him with [[Geoffrey Berman]].<ref name=":0" /> In late 2018, President Erdoğan personally lobbied President Trump to drop further investigations into Halkbank, once in person during the [[2018 G20 Buenos Aires summit|G20 meeting in Buenos Aires]] (1 November 2018), and once on a phone call (14 December 2018); according to [[John Bolton]], a first-hand witness of both events, Trump then agreed to have the investigations dropped.<ref name=":0" /> On 14 December 2018, the [[United States Department of Justice|Department of Justice]], then headed by [[Matthew Whitaker]], notified Berman's office, that it would become more involved in the Halkbank investigation.<ref name=":0" /> Despite pressure from acting-Attorney General Whitaker and his successor, [[William Barr]], to shut down the investigation, Berman and the SDNY office continued their investigation, believing that their case was strong.<ref name=":0" /> In June 2019, Barr summoned Berman to his office in Washington to push Berman to drop charges against the defendants, including Turkey's former economy minister, [[Zafer Çağlayan|Mehmet Zafer Caglayan]], and terminate investigations of other suspected conspirators.<ref name=":0" /> Berman replied that this was unethical.<ref name=":0" /> After struggling with the legal technicalities of firing Berman, Barr announced on 19 June 2020, that Berman was "stepping down from his position" but also struggled to find a replacement on such short notice; for his part, Berman insisted that he had not resigned, and declined to leave office until his deputy [[Audrey Strauss]], who planned to continue the investigation into Halkbank, had been installed.<ref>{{Cite web|last1=Swan|first1=Betsy Woodruff|last2=Mejdrich|first2=Kellie|title=How William Barr's Manhattan transfer went awry|url=https://politi.co/3dvnNBQ|access-date=2020-11-01|website=Politico PRO|date=24 June 2020 |language=en}}</ref><ref name=":0" />
In 2023, the [[Supreme Court of the United States|Supreme Court]] of the United States ruled that the Turkish bank can be prosecuted in U.S. court for its role in a conspiracy to evade Iran sanctions and the [[Foreign Sovereign Immunities Act]] does not give immunity from criminal prosecution.<ref name=CRS>{{Cite web |title=The Foreign Sovereign Immunities Act: Prosecuting Foreign States After the Supreme Court's Decision in Halkbank |url=https://crsreports.congress.gov/product/pdf/LSB/LSB10967|publisher=[[Congressional Research Service]]|date=May 18, 2023|first=
Stephen P. |last=Mulligan}}</ref>
====Appeal on common law immunity decided against Halk ====
The Supreme Court in 2023 put back to the [[United States Court of Appeals for the Second Circuit|Second Circuit]] appeals court the question of [[common law]] immunity.<ref name=CRS/> In its appeal, Halk "argued that it should get the immunity foreign governments normally receive in U.S. courts because Turkey officially designated it as a repository for Iranian oil-sale proceeds and Turkish officials participated in the alleged scheme. Turkey in its legal filing said the bank was indistinguishable from its government." In October 2024, the appeals court turned down the appeal on the common law argument, saying "the bank’s activities were essentially commercial" and allowing the U.S. government's case to proceed.<ref>Vanderford, Richard, [https://www.wsj.com/articles/turkeys-halkbank-must-face-u-s-prosecution-over-iran-sanctions-charges-cc53a799 "Turkey’s Halkbank Must Face U.S. Prosecution Over Iran Sanctions Charges"], {{Subscription|Date=October 2024}} ''Wall Street Journal'', October 22, 2024. Retrieved 2024-10-23.</ref>
==See also==
{{Portal|Banks}}
* [[List of banks in Turkey]]
* [[2013 corruption scandal in Turkey]]
==References==
{{Reflist}}
== Sources ==
* {{citation |url=https://mediaservice.halkbank.com.tr/media/document/Halkbank/YatirimciIliskileri/FaaliyetRaporlari/2019FaaliyetRaporu.pdf |title=Annual Report 2019 |year=2019 |publisher=Halkbank |ref={{harvid|Halkbank Annual Report|2019}} }}
==External links==
* {{commons category-inline}}
* {{official website|http://www.halkbank.com.tr/ }}
{{Istanbul Stock Exchange companies}}
{{Banks of Turkey}}
{{Authority control}}
{{DEFAULTSORT:Halk Bankasi}}
[[Category:Companies based in Ankara]]
[[Category:Companies listed on the Istanbul Stock Exchange]]
[[Category:Companies in the BIST 100]]
[[Category:Banks established in 1938]]
[[Category:Turkish brands]]
[[Category:Government-owned banks of Turkey]]
[[Category:Turkish companies established in 1938]]