Asset Management

Asset Management Companies are companies incorporated by obtaining license in accordance with the provisions of the Law and relevant legislation in order to operate for the purpose of

• purchasing,

• collecting,

• restructuring

• and reselling the receivables and other assets of the source institutions.

The benefits of the asset management companies to the economy are increasing the value of the state-owned assets by enabling individuals and commercial firms to pay their debts, providing the financial system with liquidity and freeing banks from operational burdens by contributing to the improvement of their balance sheets. The sector of Asset Management Companies has taken a significant role in the sustainability of stabilization within the banking system and the national economy over the years.

Asset Management Companies are subject to the regulation and control of the Banking Regulation and Supervision Agency (BRSA) and their incorporation and operation licenses are provided by BRSA. They operate for the purpose of assignment of non-performing loans from banks and non-bank institutions defined as source institution in their relevant legislation, and reintroduction of clients to the financial system by restructuring their debts.

Asset Management Companies offer payment opportunities providing flexible payment plans with term structures and installments optimized for their financial structure since their principal activity is collection management of non-performing loans. They also have a very significant social contribution regarding clients having the chance to access new resources in the financial sector with the settlement of debts.

• An Asset Management Company may acquire receivables and other assets arising from principal activities of source institutions and receivables only arising from credit insurance services of source institutions operating in insurance business, assign the receivables, collect the acquired receivables, liquidate assets or assign them by restructuring.

• It may operate, lease, collateralize, transfer and invest in real estate or other property, rights and assets acquired for the purpose of collecting receivables

• It may provide additional financing to its debtors in order to collect their receivables, provided that the total amount of financing provided does not exceed three times of its shareholder’s equity.

Our Contributions to Economy;

• Employment increase,

• Monetary relief of SMEs and business corporations,

• Resolutions for SMEs and similar business corporations having significant effects on balanced growth of our country and society, and going concern ability,

• Improvement of credit quality in the balance sheet of source institution, easing of capital and growth of loan supply,

• Increase of investments, production and consumption,

• By improving economic conditions of non-performing loan solutions, contribution for the public weal with increase in budget revenue of government due to increasing tax income.

Our benefits to source institutions;

Asset Management sector is strategically important for national economy. By acquiring non-performing loans of finance sector, particularly banks, asset management companies

• Increase return on equity and investment,

• Save on expenses of collection and other operational expenses and provide cost advantage,

• Contribute to revenue and profitability growth aiming at principal business activities,

• Serve for balance sheet improvement and relieve of operational burden.

• Which debts are assigned by Source Institutions to asset management companies?

Source Institutions assign their non-performing loan portfolio comprising irrecoverable files after approximately 2-3 years of legal proceedings to asset management companies by auction.

• Where can it be monitored whether a person or an entity has a non-performing loan?

Banks and financial institutions send a notice of credit limits and balances related to their clients on the basis of terms determined by the Risk Center. In these reports, default notices are also reported. Persons or firms may display their own risk report, and member companies in the Risk Center may display consolidated risk reports of their clients. Asset Management Companies also send notifications to the Risk Center. However, the name of the companies are hidden in this report.

• After source institutions assign loans that could not be collected from consumers to asset management companies, how are consumers supposed to proceed?

The Asset Management Company acquiring the debt informs the client about the taken over debt from the bank by making contact and presents an applicable restructuring model so that the client may pay off the debt. The only necessity for the client is being in communication with the Asset Management Company, by which the debt is acquired, and conforming with the agreed payment plan.