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Banking Department Issues Consent Order of Assessment of Monetary Penalty Against T.C. Ziraat Bankasi, New York Branch


In the Matter of

T.C. Ziraat Bankasi, New York Branch


WHEREAS, T.C. Ziraat Bankasi is a Turkish bank (the “Bank”) that received a license to open a branch (the “New York Branch”) in New York on April 29, 1983, pursuant to New York Banking Law (“Banking Law”) Section 26; and         

WHEREAS, pursuant to Banking Law Section 202-b 2 and Part 52 of the General Regulations of the Banking Board, the Superintendent of Banks of the State of New York (the “Superintendent”) is authorized to prescribe and impose specific asset maintenance requirements for branches of foreign banks; and 

WHEREAS, by letter dated May 5, 1994 (the “May 1994 Letter”), the Superintendent advised the New York Branch that it would henceforth be required to maintain a certain amount of eligible assets within the state of New York; and 

WHEREAS, during the course of a recent examination, it was determined by Banking Department examiners that the New York Branch has not been in compliance with the May 1994 Letter in that the required level of assets have not been maintained within New York since December 2002; and 

WHEREAS, Banking Law Section 44 authorizes the Superintendent, after conducting a hearing on the matter, to impose monetary penalties for violations of the Banking Law or any regulation promulgated pursuant thereto; and  

WHEREAS, the Superintendent and the New York Branch have mutually agreed to the issuance of this Consent Order (“Consent Order”), pursuant to Banking Law Section 39, in order to resolve the issue noted during the examination on the basis of the terms and conditions set forth below; 



  1. Fully understanding the terms and conditions of this Consent Order, the New York Branch knowingly and voluntarily waives (1) its right to a hearing on the violation cited above, and (2) any and all rights of appeal relating to this matter. 
  2. The New York Branch will take all steps necessary to comply and remain in compliance with the May1994 Letter and all applicable New York State laws and regulations relating to asset maintenance; and
  3. The New York Branch shall pay a fine in the amount of $103,000 to the Superintendent. Payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department. 
  4. All communications regarding this Consent Order shall be sent to:

Michael J. Lesser
Deputy Superintendent of Banks
Foreign Financial Services Division
New York State Banking Department
One State Street
New York, New York 10004  

Mr. Yalcin Ozay  
Acting Managing Director  
Turkiye Cumhuriyeti Ziraat Bankasi  
New York Branch  
330 Madison Avenue, 32nd Floor  
New York, New York 10017    

  1. The provisions of this Consent Order shall not bar, estop or otherwise prevent the Superintendent, or any state or federal agency or department, from taking any other action affecting the New York Branch or the Bank, any of their current or former officers, directors, employees, or insiders, or their successors or assigns with respect to any matter relating to this Consent Order.

  2. No extension or waiver of the terms of this Consent Order shall be binding on the Banking Department unless it is in writing and signed by the Superintendent.

  3. Each provision of this Consent Order shall remain effective and enforceable until stayed, modified, terminated or suspended in writing by the Superintendent.

  4. This Consent Order shall not be considered a confidential communication under Banking Law Section 36 (10).

  5. The effective date of this Consent Order is the date on which the Superintendent executes it.

Yalcin Ozay 
Acting Managing Director  
T.C. Ziraat Bankasi  

Michael J. Lesser
Deputy Superintendent of Banks
New York State Banking Department  



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